Guangdong Banking Regulator Commits to Use of the “Waters of Finance” to Cultivate High-quality Growth

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The head of the Guangdong province banking regulator has committed to further use of the “waters of finance” to spur high-quality growth within the region.

The Guangdong province municipal government held its high-quality development conference in Guangzhou on 28 January, billed as the region’s first major political meeting for 2023.

Pei Guang (裴光), director of the Guangdong Banking and Insurance Regulatory Bureau, said in a speech at the conference that in 2023 Guangdong would “focus on high-quality development, continue to guide Guangdong’s banking and insurance sectors to increase financial supply, optimize financial services and improve service efficiency, and use financial water to help Guangdong take the lead in high-quality development and set an example.”

“At the same time, we will continue to prevent and control risks in key areas, steadily and orderly promote the reform of small and medium-sized banking and insurance institutions to eliminate risks, severely crack down on illegal financial activities, and build a solid financial security cornerstone and dam for the province’s high-quality development,” Pei said.

Key measures outlined by Pei for 2023 include:

  1. Finance empowering the construction of the Greater Bay Area and creating an important source of power for the high-quality development of Guangdong. Actively promoting the introduction of provisions on financial support for the development of Hengqin and Nansha; accelerating the preparation of insurance service centers, and cooperating with overall province-level planning to promote the establishment of international commercial banks in the Greater Bay Area. Optimizing and promoting “Cross-border Wealth Management Connect”, and researching and exploring “Cross-border Insurance Connect”.
  2. Finance empowering the manufacturing sector to support Guangdong in accelerating the development of a modern industrial system. Focusing on key projects and major platform construction, and continuing to increase medium and long-term loan grants and insurance capital investment. Supporting the development of Guangdong as a strong province for scientific and technological innovation, and promoting the virtuous circle of “technology-industry-finance”. Improve financial services for industrial parks.
  3. Finance empowering the development of major projects and promoting the implementation of policy-based developmental financial instruments. Continuing to make effective use of policy development financial instruments, accelerating the progress of project construction and fund payment, and promoting the formation of larger physical workloads as soon as possible.
  4. Finance empowering the development of the real estate industry and promotes the normal circulation of finance and real estate. Maintaining the stable and orderly financing of real estate, doing an effective job for providing “guaranteed housing” financial services; helping troubled real estate companies deal with risks, and supporting rigid and improved housing needs.
5. Finance empowering the development of hundreds of counties, thousands of towns and thousands of villages, and promotes the coordinated development of urban and rural areas. Guiding policy development banks to provide more long-term, low-cost loans for county-level infrastructure projects. Actively participating in the financial multiplication project in the east, west and north of Guangdong to support the high-quality development of agriculture and rural areas.

6. Finance empowering the "Green and Beautiful Guangdong" (绿美广东) campaign and aiding the development of an ecological civilization. Spurring banking and insurance institutions to improve green financial innovation and service capabilities, promoting the continuous growth of green credit, and vigorously developing green insurance.

According to data from the Guangdong province banking and insurance regulator, the added value of the province’s financial sector accounted for 1/10 of GDP in 2023, while its tax contribution exceeded 20%. The Guangdong’s banking sector’s assets, deposits, loans, insurance industry assets, premiums, compensation payments and other indicators also rank first within China.