On March 6, members of the CPPCC National Committee from Sichuan and Chongqing jointly proposed national support for constructing a Western Financial Center. They have submitted the Proposal on Supporting Chengdu and Chongqing to Construct Western Financial Center, including relevant suggestions jointly.

Jiangbeizui Financial Core Area. Jiangbeizui Financial Core Area now has over 300 financial enterprises, of which 73 set their national or regional headquarters here. (iChongqing file photo)

The proposal called for national support for establishing key financial infrastructure and significant financial institutions in the Chengdu-Chongqing region.

A major mission

In January 2020, China's central government clarified the task for Chengdu and Chongqing to jointly develop the western financial center. In 2021, the country cleared the western financial center to serve countries and regions contributing to the Belt and Road Initiative.

"Construction of the western financial center is a major mission assigned by the CPC Party Committee to the Chengdu-Chongqing region," agreed the CPPCC National Committee members from Sichuan and Chongqing.

Three aspects for further improvement

Firstly, the coordination mechanism: as the financial powers lie in the central government; the current leading group cannot coordinate relevant affairs effectively and implement policies smoothly. Therefore, the Chengdu-Chongqing region needs great support from the financial authorities of the central government.

Secondly, the scale of financial institutions: Chengdu-Chongqing region lacks national corporate banks and other financial institutions and infrastructure. At the same time, local corporate banks and financial organizations, such as those for microloans, cannot conduct cross-provincial or -municipal business with insufficient cross-border capital allocation. In a word, the financial institutions in the region have not yet been able to create combined effects.

Thirdly, capital and talent: Chengdu-Chongqing region needs high-caliber financial professionals to grow the western financial center.

Five suggestions

First, to build a coordination mechanism led by the State Council with an office in the People's Bank of China.

Second, to set a special fund in the Chengdu-Chongqing region for financial infrastructure construction and investment; to plan for an innovative national exchange for securities and futures; to promote the International Monetary Fund and Singapore Exchange set offices in the western financial center.

Third, to support and encourage regional integration. Specifically, the proposal mentions building commercial banks headquartered in Chengdu and Chongqing while serving western China and delegating the authority to establish financial institutions in Sichuan and Chongqing to the provincial level.

Fourth, to promote openness and innovation in the financial sector. The proposal recommends accelerating the approval of the China-Singapore Mutual Recognition of Funds Pilot Scheme and establishing China-Singapore securities joint ventures under the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity.

Fifth, to support talents related to the construction of the western financial center. The proposal advises guiding the construction of an international financial talent port in the Chengdu-Chongqing region and setting up national financial research platforms based on the Department of Finance in Chongqing universities.