Global Asset Management Forum 2023 Annual Conference was recently held in Beijing.

In 2022, the value added of the financial sector in Beijing reached CNY 819.7 billion, a year-on-year increase of 6.4 percent, surpassing the national average. The financial sector contributed 19.7 percent of the total GDP, hitting a record high. Based on its continued efforts for reform and opening up in the financial sector, Beijing has seen its function improved as a national financial management center and exhibited growing market development potential.

In terms of policies and resources, Beijing has long been a pioneer in pilot projects for reform, opening up, and innovation in China's financial sector. Since the inception of the "Two Zones" development in 2020, more has been done to open up the financial sector, involving 102 pilot tasks. The city took the lead in advancing the pilot cash-pooling service integrating local and foreign currency management for multinational companies, and promoted pilot projects related to Qualified Domestic Limited Partner (QDLP) and Qualified Foreign Limited Partner (QFLP). Beijing was also the first to adopt innovative fintech regulatory instruments in China. In addition, the city carried out the pilot project of secondary market transactions in private equity, released the Beijing Initiative on Climate-Friendly Banking, piloted climate-related investment and financing, and unveiled and implemented guiding opinions for the development of an international wealth management center.

Regarding capital resources, Beijing is a national center for capital. Its total financial assets have exceeded CNY 190 trillion, accounting for around 50 percent of the national total. The assets managed by institutions in Beijing, including public funds, bank wealth management programs, and the asset management branches of insurance companies and securities brokers, have exceeded CNY 30 trillion, accounting for about 30 percent of the national total. The city has long ranked first nationwide in terms of the scale of private equity and venture capital.

In terms of institutions in the financial sector, Beijing has more than 900 licensed financial institutions of all kinds. Among the ten Chinese financial institutions ranked among the top 20 of The Banker’s Top 1000 World Banks 2022, six are headquartered in Beijing. The city is home to around one third of wealth management subsidiaries of various banks, 30 percent of insurance asset management companies and 20 percent of public funds in China. Beijing Asset Management Association, the first cross-industry organization for asset management self-discipline in China, has also been established in Beijing.

In terms of market resources, Beijing continues to see improvements in its multi-tiered capital market, maintaining a leading position in China with regard to the scale of direct financing. To date, the city has become home to 786 companies listed on domestic and international exchanges, ranking first nationwide in terms of the total market value of such companies. China's first group of public real estate investment trusts (REITs) in the sector of public rental housing has been in operation in the city. The Beijing Stock Exchange has been in smooth operation since trading commenced, with more than 180 companies listed on it and increasingly diverse transactions. In 2022, treasury bonds were issued on the Beijing Stock Exchange for the first time. At present, the government bonds issued on the exchange have totaled CNY 1.42 trillion in value.

Beijing's financial sector employs at least 800,000 professionals, with individuals holding Chartered Financial Analyst (CFA) certificates accounting for 30 percent of the total number in China. Moreover, Beijing has established an accreditation mechanism for international professional qualifications in the financial sector covering securities, funds and futures, and thus high-end overseas talent can enjoy greater convenience working in the city. After its establishment, the Beijing Financial Court offers better court services required in the financial sector, further improving the legal and credit environment for Beijing's financial sector.

(Source: Beijing Daily)