Chongqing- Members of the Chongqing Municipal Committee of the Chinese People's Political Consultative Conference (CPPCC) and experts from industries and universities brainstormed at Chongqing Jiangbeizui on how to build the western financial center by introducing headquarters, constructing a multi-level capital market, and entrenching the rule of law on September 20.

The plan released on December 24, 2021, which will build the western financial center in the Chengdu-Chongqing economic circle by 2025, aims to develop the Chengdu-Chongqing region orientated towards Southeast Asia, create a strong growth pole, and source greater impetus for high-quality development.

Introducing financial institution headquarters

The participating parties believed that the joint construction of the western financial center would provide a significant opportunity for the financial industry in Chengdu and Chongqing. However, compared to Beijing and Shanghai, Chengdu and Chongqing region has relatively narrowed financial industry and insufficient financial institutions.

"The entire western region doesn't have a national bank headquarters," said Ran Hailing, president of the Bank of Chongqing. "We need to seek support from the central government, introduce financial institution headquarters and territorial agent, to attract more funds to stay in Chongqing."

Li Yu, a member of Chongqing Municipal Committee of CPPCC and vice president of Bank of China Financial Leasing Co., Ltd., said the financial institution had given full play to its headquarters over the past two years to develop green finance, technology finance, and supply chain finance.

Bank of China Financial Leasing Co., Ltd., a Bank of China (BOC) subsidiary, is the first non-bank financial institution in Chongqing with a registered capital of over 10 billion yuan (about 1.4 billion U.S. dollars).

Li said that Bank of China Financial Leasing Co., Ltd had invested about 55.2 billion yuan all over the country, and 30% is green lease assets, ranking at the top level in the industry.

Building a multi-level capital market

Chongqing's capital market has developed rapidly in recent years. Data shows that Chongqing added ten domestic listed enterprises in 2021, bringing the total to 67. Currently, 14 enterprises are under review.

Zheng Songshan, deputy director of the Chongqing Securities Regulatory Bureau, said that the national capital market is implementing reform measures. Chongqing needs to seize the opportunity to incubate more listing enterprises.

Meanwhile, supporting eligible enterprises to issue green and technological innovation bonds and guiding social capital to establish green and low-carbon industry investment funds remain keys. 

"Venture capital institutions and securities companies are encouraged to assist local business investment, screen projects, and provide listing guidance," said Liao Qingxuan, deputy director of the Economic Committee of Chongqing Municipal Committee of CPPCC.

Consolidating the financial rule of law

"In the long run, the financial ecology of the western financial center should land on institutions and the rule of law," said Wang Yuyu, member of the National Committee of the CPPCC and chief expert of the Southwest University. "At present, efforts should be made to coordinate Chengdu and Chongqing to promote the implementation of framework laws, preferential laws, regulatory laws, and pilot rules."

Wang continued that demonstrating cases and trial standards for green finance, consumer finance, supply chain finance, RMB cross-border payment, settlement, and Belt and Road Initiative investment needs to speed up formation.

"With a convenient system and an advanced legal environment to cultivate and attract the main community of financial ecology, and gathering more financial centers," Wang added.

Wang thinks the western financial center will eventually become the international financial arbitration (mediation) center, integrate cross-regional alternative dispute resolution center (ADR), and online financial dispute resolution platform (ODR) for countries along the New International Land-Sea Trade Corridor and Belt and Road.