Pilot zone for green financing in Guangzhou


Guangzhou is building up its pilot zone for green financing to create a core financial circle led by Hong Kong and supported by Guangzhou and Macau, according to China News Guangdong.
The pilot zone will be sited in Huadu District, Guangzhou City.
Last month, the central bank announced that five pilot zones for green financing would be established in the country in order to improve current environmental conditions as well as handle climate change and the adequate use of resources.
The five zones will be set up in the provinces of Guangdong, Guizhou, Jiangxi and Zhejiang as well as the western region of Xinjiang Province.
Green financing provides financial support in investment relating to clean energy, green transportation and related fields.
The pilot zone in Guangzhou welcomes eligible financing institutions from both SARs to set up joint ventures in the fields of securities, funding, futures and insurance in order to expand green financing channels.
Investors from Hong Kong and Macau are also welcome to partner approved overseas enterprises in the pilot zone to invest in the national Green Private Equity Fund and Green Venture Capital Fund.
Moreover, the zone supports overseas enterprises issuing Chinese Renminbi Bonds with banks in Mainland China.
According to China News Guangdong, Huadu District invests at least RMB1 billion (MOP1.19 billion/US$143.31 million) every year in supporting the development of green financing.
In addition, the Chinese city also placed no less than RMB10 billion in green financing funding to attract investors and provide support.
The pilot zone in Guangzhou, as stated by Chen Yun – a member of the Party of People’s Government of Guangdong Province – will facilitate a strong bond with Hong Kong and Macau, as well as building the Greater Bay Area into an internationally recognised city-cluster.