Current Situation and Institutional Arrangement of the Cross-Border Business of Financial Institutions in Guangdong and Macao

The synergistic development of financial institutions in the region mainly includes cross-border trading of financial products and cross-border provision of financial services, which is manifested in the form of cross-border business and mutual establishment of financial institutions including banks, insurance, securities and funds. Specifically in Guangdong, Hong Kong and Macao, main directions of development are cross-border bank loans, insurance services, asset management and payment business. Considering the obvious differences in the monetary, tariff and financial regulatory systems of Guangdong, Hong Kong and Macao and the fact that the capital account of the mainland has not yet been fully liberalized, and that Zhuhai and Macao still lack a financial market that can provide diversified products, a mature stock exchange and an interconnection mechanism, in this chapter, we will focus on the liberalization of Zhuhai-Macao financial services trade rather than the integration of financial markets. From the perspective of theory and practice, we will study the current situation, institutional arrangements and proposals of cross-border business of banks, insurance and other financial institutions in Zhuhai and Macao in the form of setting up non-local branches. At the same time, key research will be carried out on the two models of development: “single passport” and “enclave + free trade zone”.