The Financial Silk Road

On June 18, at Lujiazui Forum in Shanghai, China’s central bank governor Pan Gongsheng unveiled eight major measures to further open China’s financial sector and bolster Shanghai as a global financial hub. The eight measures include:
– Establish an interbank market transaction repository
– Set up a digital yuan international operation centre
– Introduce licensed personal credit agencies
– Launch a pilot program for offshore trade financial services in Shanghai’s Lingang Special Area
– Develop free trade offshore bonds
– Upgrade free trade account functions
– Pilot innovative monetary policy tools in Shanghai
– Promote yuan foreign-exchange futures trading

On June 22, China’s central bank and the Hong Kong Monetary Authority launched Payment Connect, drawing strong interest from both financial markets. Payment Connect is a new real-time payment system that can also be used via smartphone, simplifying and speeding up transactions across the border in both directions. In its initial phase, the system will be accessible to twelve banks, six from each side.

In conjunction with the enactment of the Stablecoin Ordinance, the Hong Kong Monetary Authority announced that it will begin accepting license applications starting August 1. Licenses for stablecoin issuance will be subject to very stringent standards, comparable to those required for banking activities. In addition, applicants must demonstrate that their stablecoins serve practical and concrete purposes. The new law and the city’s business environment position Hong Kong as one of the potential global hubs for the regulation and oversight of stablecoins.

Chinese President Xi Jinping’s state visit to Kazakhstan and participation in the China–Central Asia summit, starting June 16, signal a deepening of strategic regional ties, as China and Central Asian nations move toward a more collective engagement model. This cooperation enhances the region’s global visibility and reflects a shift from bilateralism to multilateral development goals.

Kazakhstan’s President Tokayev affirmed that China National Nuclear Corporation (CNNC) is a reliable strategic partner for the country’s planned nuclear power plant projects, citing the company’s expertise and existing nuclear cooperation between the two nations.

Belarus expressed strong interest in developing joint projects with China’s Heilongjiang Province, aiming to deepen trade and economic ties in areas like agriculture, machinery, medicine, and energy. Both sides also see potential for scientific collaboration, including the creation of a joint lab under the Belt and Road Initiative.

South Sudan and China have reaffirmed their long-standing partnership in the oil sector, with Chinese oil giant CNPC pledging continued technical support and investment to boost South Sudan’s oil production. This deepened cooperation aims to align with the country’s development goals and strengthen energy ties despite past political and economic challenges.