Joint steps needed to boost capital circulation in Bay Area, expert says

Wen Jiandong, a professor at the University of International Business and Economics. [Photo provided to China Daily]

An expert called for joint efforts to standardize and integrate financial infrastructure in the Guangdong-Hong Kong-Macao Greater Bay Area, so as to enhance the circulation of capital in the area.

Wen Jiandong, a professor at the University of International Business and Economics, said banks in the Bay Area can further leverage the role of inter-bank foreign currency clearing system in the future.

Wen said more channels should be set up to support cross-border capital circulation. "The move can facilitate the establishment of an international innovation and technology hub in the area," Wen said.

China is committed to developing an international innovation and technology hub in the Bay Area, which is expected to become a fresh force for national innovative development.

The Bay Area consists of the Hong Kong Special Administrative Region, the Macao Special Administrative Region, and nine cities in Guangdong province.

"The Bay Area needs not only regional development, but also the integration with the Belt and Road Initiative," Wen said.

"Hong Kong has a strong advantage in the modern service industry, like finance, accounting and law. The development of Belt and Road Initiative needs these services of Hong Kong. Macau also has advantage in Portuguese-speaking countries," Wen added.

In addition to facilitate capital flow, relevant parties should ramp up efforts to give Hong Kong and Macao residents equal treatment in the Chinese mainland, Zheng Yujie, a senior researcher at Shenzhen-based China Development Institute, a think tank, said.

Having the same access to social insurance, house purchase and education as the mainlanders can make their lives easier, Zheng said.

They made the remarks on Tuesday at a seminar organized by Tencent Financial Technology Think Tank. Several researchers and scholars attended the meeting and discussed such topics as macro economy and relevant policies, small- and medium-sized enterprises' development.