China’s cabinet on Monday issued guidelines for developing a “Greater Bay Area” around the Pearl River Delta, in a bid to spur growth and transformation in Guangdong province and the cities of Hong Kong and Macau.
The area is home to some 68 million people with a combined GDP of $1.5 trillion, roughly that of Australia or South Korea.
The development plans will “further enhance and support and leading role of Guangdong-Hong Kong-Macau Greater Bay Area in national economic development and opening up”, the Xinhua news agency said, citing the cabinet’s guidelines.
The aim is to turn the Greater Bay Area into a global technology innovation center and build advanced manufacturing and modern services industries, it said.
The area will also promote “coordinated development and create a model for high quality development”, it said.
Authorities will expand and upgrade airports in Hong Kong, Macau, Guangzhou and Shenzhen, and accelerate construction of large-scale oil reserve bases in the Pearl River Delta area, Xinhua said.
Financial institutions in the Greater Bay Area will be allowed to conduct spot and forward yuan trading and yuan derivatives and conduct cross-border yuan lending, Xinhua said.
Companies in the Greater Bay Area would be allowed to issue yuan-denominated bonds within the area, it said.