In this Oct 22, 2020 photo, Peter Wong Tung-shun (right), deputy chairman and chief executive of Hongkong and Shanghai Banking Corp (HSBC), touches a lion statue outside the HSBC headquarters building in Central, Hong Kong. (PARKER ZHENG / CHINA DAILY)

Guangdong-Hong Kong-Macao Greater Bay Area should develop a system of financial rules in line with international standards and accelerate integrated development of financial markets and services in the region, Peter Wong Tung-shun, a member of the National Committee of the Chinese People’s Political Consultative Conference, the country’s top political advisory body, said. 

Peter Wong Tung-shun also advised that HK laws be included in applicable laws in the implementation of contracts, or that arbitration could be made in Hong Kong

Although the Bay Area has made big strides in the construction of financial infrastructure, connectivity of financial markets and financial opening-up, some institutional barriers remain; differences in financial regulations, difficulties in providing cross-border financial products and services, as well as other problems need to be addressed, said Wong, who is also chief executive and deputy chairman of HSBC Asia-Pacific.

In his proposal submitted to this year’s “two sessions”, the annual political gathering that began in Beijing on Thursday, Wong suggested that the Bay Area learns from the experience of the European Union to implement a “single pass” system in the licensing and qualification of financial institutions. With this method, Guangdong, Hong Kong and Macao financial institutions would have no need to apply for access separately when they offer cross-border financial services, he said. 

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Convergence of legal rules in the Bay Area is vital for creating a transparent and predictable environment, strengthening the confidence of international investors and enhancing efficiency of the financial sector, Wong said.

The Bay Area could explore the possibility of translating some of the case laws in Hong Kong that are highly relevant to cross-border financial business into financial regulations in Guangdong free trade zones through legislation, he said. Wong also advised that Hong Kong laws be included in applicable laws in the implementation of contracts, or that arbitration could be made in Hong Kong.

As more young people from Hong Kong and Macao set up businesses across the border, Wong highlighted the importance of data information connectivity. The CPPCC member suggested that better policy coordination between Guangdong and the two special administrative regions be made to allow Hong Kong and Macao entrepreneurs to apply for financial services at Chinese mainland financial institutions with their credit records at their original places of residence.

He also advised the various governments to jointly set up a consultation services organization where they could publish policy information, business opportunities and answer inquiries to provide better help for Hong Kong and Macao youths to develop on the mainland.