Li Yunze proposes six measures to consolidate HK's position as financial center at Investment Summit

The Global Financial Leaders' Investment Summit is held in Hong Kong today (Nov. 19) and tomorrow (Nov. 20). Li Yunze, Director General of the National Financial Regulatory Administration, said at the Summit that the Authority is firmly committed to supporting Hong Kong in consolidating and enhancing its status as an international financial center.

Li said that in the recently signed amendment to CEPA, a number of new financial liberalization measures have been introduced, including the abolition of the requirement that Hong Kong financial institutions must have total assets of not less than US$2 billion (about HK$15.5 billion) at the end of the most recent year in order to invest in insurance companies, and the abolition of the restriction that foreign bank branches set up by Hong Kong service providers are not permitted to engage in the business of bank card services.

According to Li, as a next step, the National Financial Regulatory Administration will strongly support Hong Kong to consolidate and enhance its unique position and advantages under the premise of "One Country, Two Systems", maintain its long-term financial prosperity and stability, and realize its own better development in the process of integrating into the overall situation of the country's development.

These include:

First, continuously enhancing the level of opening up of the financial sector to Hong Kong and Macao, expeditiously completing the adjustment of laws and regulations relating to the new liberalization measures under CEPA, promoting the early implementation of the relevant legislation, exploring and promoting the interconnection of regulatory mechanisms and rules, and studying the introduction of policies and measures to enhance the level of facilitation of financial services in the Greater Bay Area.

Second, actively supporting the development of the headquarters economy in Hong Kong, encouraging Chinese banks and insurance institutions to set up regional headquarters outside Hong Kong, and supporting banks and insurance institutions of the two places to strengthen all-round cooperation, so as to provide one-stop financial services for Chinese enterprises going global.

Third, to assist in the development of Hong Kong as an international risk management center, support more Mainland insurance companies to issue Catastrophe Bond in Hong Kong, support the accelerated development of Hong Kong's international reinsurance market, and encourage Chinese banks in Hong Kong to participate in the construction of Hong Kong's international gold trading center.

Fourth, further deepen the financial cooperation between the two places in respect of elderly care, promote cross-border cooperation in respect of elderly care insurance in the Greater Bay Area, serve the needs of Hong Kong residents who go northward for elderly care, and support the cooperation between insurance organizations of the two places in developing cross-border medical insurance products.

Fifth, support Hong Kong in nurturing the development of new quality productivity, promote in-depth cooperation between banking and insurance institutions of the two places in emerging areas such as green and low carbon, artificial intelligence, etc., and support Hong Kong in building an international innovation and technology center.

Sixth, we will join hands to address risk challenges, further improve the communication mechanism between the financial regulators of the two places, strengthen exchanges and cooperation in dealing with cross-border risks and crisis management, and improve the arrangements for coping with the relevant risks, so as to provide full support for the safe and stable operation of Hong Kong's financial sector.

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