A view of Shenzhen. [Xinhua]

Shenzhen has published a policy supporting the development of a gold financial industry in Luohu.

The aim is to improve the ability of Shenzhen’s financial sector to serve the development of the real economy, and expand the city’s international influence through financial innovation.

The policy consists of 24 concrete measures the city will take to encourage innovation in regard to the gold finance sector, improve the business environment for the industry and promote cooperation.

Shenzhen plans to take advantage of Luohu’s gold industrial agglomeration and strengths in the gold and jewelry industry to transform the district into a core zone in this regard.

The policy encourages financial agencies and enterprises to create gold-based financial products, promote the gold financial trade, apply advanced financial technology and build brands in the gold buy-back business.

The policy supports Luohu district to set up gold industrial funds, and encourages gold enterprises to engage in venture capital investment, regrouping, mergers and acquisitions, and launch of big projects in the district; it supports gold enterprises working with financial agencies to securitize gold assets.

The policy documents say Shenzhen should pilot the gold financial industry’s cross-border business and supervision innovation among Guangdong, Hong Kong and Macao, strengthen the city’s international cooperation in gold financial industry, and expand its opening-up.

For instance, the policy supports the city’s investment and loan funds to provide financing services for gold and jewelry enterprises seeking development in oversea market.

The Shuibei-Buxin zone of Luohu district has become a gold and jewelry trade center of China.

Statistics show that the annual business transaction volume of gold and jewelry in the zone accounts for about half of the national wholesale market, and more than 80% of that of the Shenzhen city.

That lays a solid foundation for Luohu to develop its gold finance industry, so that the financial circulation of gold can replace the physical circulation of gold reducing the operational costs of gold enterprises and linking the circulation of gold and the circulation of gold finance.

If the gold finance industry can take root in Luohu, it can unleash Shenzhen’s potential to become not only a trade center of gold but also gold financial center for relevant enterprises.

This can promote the upgrading of the gold and jewelry industry, and expand the scale of investment in gold and wealth management in the city.