Guangxi set to boost ties with ASEAN

China has announced it will build the Guangxi Zhuang autonomous region into a financial opening-up gateway to the Association of Southeast Asian Nations.

Guangxi will become the channel facilitating economic and financial cooperation between China and ASEAN members after five years of development, according to the plan released by the People’s Bank of China, the central bank, and 12 other departments on Friday.

Located in South China, Guangxi adjoins the ASEAN region, and has close cultural and commercial relationships with the association’s members, the development plan said.

Leveraging this advantage, Guangxi will promote the use of the Chinese yuan in the region, and deepen financial system reform through closer financial cooperation with ASEAN members, it said.

Specifically, Guangxi will explore becoming a pilot area for Qualified Domestic Investment Enterprises, where qualified institutions are allowed to invest funds raised domestically in overseas markets.

The two sides’ financial markets will become more integrated, according to the plan.

For bond markets, Guangxi will allow qualified issuers from ASEAN economies to issue yuandenominated bonds in domestic markets, and encourage enterprises and investors from the region to purchase Chinese government bonds.

Guangxi will also push forward the two-way opening-up of the financial industry, and attract more professionals in the financial sector in the process, the plan said.