Shenzhen office acts as 'go-to' agency
By Hu Xiaocen |
July 2, 2012, Monday
|
Print Edition
Print Edition
XIAO Yafei
Director of Shenzhen Municipal Government Financial Services Office
The Shenzhen government has long insisted on market orientation, so we've positioned the financial services office as a pure coordination service agency, whose main role is to provide coordination services for financial institutions.
Shenzhen's concept is that during the process of financial reform and innovation, we cannot be the athlete or the referee, we should be a good venue administrator. The first major function of a local government is to guide the industry, and to align our work with the central policies. We merely make guidelines. The development of the industry deeply relies on the players in the market. In addition, the regulator may need to encourage innovation.
After the direction in the macro picture is confirmed, we need to aggregate the local industry recourses, human recourses and even land recourses with the financial recourses, until they are fully mixed to produce a fission effect. This is what we do, because we know what kind of financial services each industry needs. The office works as a communication bridge.
Lastly, we play the role as a stabilizer. We are at the front line, so we have more recourse to handle group risk. Local regulators should bear totally what they are responsible for.
Shenzhen is currently studying the two-way cross-border circulation mechanism for the yuan. The Qianhai District will be the testing area of the yuan internationalization. The central government agreed to let Qianhai implement a pilot program of capital account opening. We are working on yuan-backed cross-border loans and luring low-cost funds from Hong Kong to support the development and construction of Shenzhen. More financial institutions from Qianhai will be allowed to issue bonds in Hong Kong, while the entry requirement of Hong Kong financial institutions to tap the mainland market will also be lowered.
Director of Shenzhen Municipal Government Financial Services Office
The Shenzhen government has long insisted on market orientation, so we've positioned the financial services office as a pure coordination service agency, whose main role is to provide coordination services for financial institutions.
Shenzhen's concept is that during the process of financial reform and innovation, we cannot be the athlete or the referee, we should be a good venue administrator. The first major function of a local government is to guide the industry, and to align our work with the central policies. We merely make guidelines. The development of the industry deeply relies on the players in the market. In addition, the regulator may need to encourage innovation.
After the direction in the macro picture is confirmed, we need to aggregate the local industry recourses, human recourses and even land recourses with the financial recourses, until they are fully mixed to produce a fission effect. This is what we do, because we know what kind of financial services each industry needs. The office works as a communication bridge.
Lastly, we play the role as a stabilizer. We are at the front line, so we have more recourse to handle group risk. Local regulators should bear totally what they are responsible for.
Shenzhen is currently studying the two-way cross-border circulation mechanism for the yuan. The Qianhai District will be the testing area of the yuan internationalization. The central government agreed to let Qianhai implement a pilot program of capital account opening. We are working on yuan-backed cross-border loans and luring low-cost funds from Hong Kong to support the development and construction of Shenzhen. More financial institutions from Qianhai will be allowed to issue bonds in Hong Kong, while the entry requirement of Hong Kong financial institutions to tap the mainland market will also be lowered.
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