On November 5, CF40 held a roundtable seminar to review the research project on Opportunities and Challenges of Digital Finance in Guangdong-Hong Kong-Macao Greater Bay Area. The research project is led by Shen Yan, CF40 Guest Member and Deputy Director of Institute of Digital Finance of Peking University, and Huang Yiping, Chairman of CF40 Academic Committee and Deputy Dean of National School of Development at Peking University.
The seminar kicked off with a keynote speech by Shen Yan. In her speech, Shen demonstrated the research result from multiple dimensions, including the background, necessity and feasibility, as well as achievements, challenges and outlook of the development of digital finance in Guangdong-Hong Kong-Macao Greater Bay Area. She pointed out the Area has made great achievements in enabling digital finance to facilitate high-quality development of real economy by fostering unique financing models and connectivity between the upper stream and lower stream of industries.
Despite the achievements, the development of digital finance in the Greater Bay Area also encounters four major challenges. First, the economic fundamentals in the Area are still imbalanced in terms of geographical and industrial structure. Second, connectivity among Guangdong, Hong Kong, and Macao needs to be improved and the advantage of “One Country, Two Systems” principle is yet to be fully tapped into. Third, regional financial systems face various risks such as operational risk and market risk. Fourth, the building of a digital ecosystem in the Area is still in its infancy.
Going forward, the Greater Bay Area could make three shifts to further develop digital finance: first, shift from inclusive finance to technological innovation; second, shift from consumer internet to industrial internet; third, shift from domestic business to cross-border business.
Following the keynote speech were comments from Xiao Gang, CF40 Nonresident Senior Fellow and former Chairman of China Securities Regulatory Commission(CSRC), and Yang Kaisheng, CF40 Advisor and former President of Industrial and Commercial Bank of China. The second half of the seminar featured a candid and informative roundtable discussion, followed by response from Huang Yiping, one of the leaders of the project team.
Four policy recommendations were made by the experts to promote high-quality development of digital finance in the Greater Bay Area. First, fully utilize the advantage of “One Country, Two Systems” principle to align the area with international standards and integrate the area into the grand picture of national development. Second, facilitate the flow of factors concerning production, finance, data, talents, and technology. Third, strengthen cooperative innovation in the field of digital finance, including investment in fintech, pilot projects like digital banks and digital RMB, and establishment of cross-border regulatory platforms. Fourth, balance innovation and risk prevention.
The event was co-hosted by China Finance 40 Forum(CF40) and China Finance 40 Research Institute, with the support of Institute of Digital Finance of Peking University. CF40 Secretary-General Wang Haiming moderated the event.