Financial Secretary Paul Chan today began his visit to Shanghai and Nanjing, highlighting the broad room for synergistic development between Hong Kong and Shanghai over the next five years.
Arriving in Shanghai this afternoon, Mr Chan attended the Lujiazui Forum Plenary Session in the evening and spoke on the theme of “Empowering High-standard Financial Opening-up through Shanghai-Hong Kong Financial Synergy”.
He noted that the country’s 15th Five-Year Plan sets out the acceleration of efforts to build a strong financial nation, which provides both cities with a shared mission.
As international investors demand more diversified asset allocation amid a complex geopolitical environment and a new technological revolution, Mr Chan said both cities should leverage their complementary strengths to serve the country’s high-level two-way opening-up.
He pointed out that Hong Kong and Shanghai connect the Mainland’s market with global capital and international rules, acting as vital channels for international capital allocation into Chinese assets.
Mr Chan welcomed the announcement today by Chairman of the China Securities Regulatory Commission Wu Qing supporting the near-term launch of five-year renminbi government bond futures trading in Hong Kong. He said the move will enhance risk management tools and attract more international investors to the Mainland government bond market.
Capital market co-operation between the two cities continues to deepen. As of May, 212 Shanghai enterprises were listed in Hong Kong, with a total market capitalisation exceeding HK$4.3 trillion.
Looking ahead, the financial chief proposed two main directions for co-operation.
First, both places should open up full-chain fundraising and financing channels, help innovation and technology enterprises pursue two-way financing and jointly develop exchange-traded funds and index products. They should also foster co-operation in patient and long-term capital to support emerging and future industries.
Second, the two cities should boost the international functions of the renminbi by enriching investment products and promoting “China price” products denominated and settled in renminbi. They can also accelerate the synergistic combination of “industries in Shanghai and offshore treasury in Hong Kong” to support enterprises going global.
Mr Chan added that Hong Kong is actively formulating its first five-year plan to align with the country’s 15th Five-Year Plan. He expressed hope that both cities would use the power of finance to create tangible value for enterprises and the public.
Mr Chan will continue his Shanghai itinerary tomorrow morning before proceeding to Nanjing in the afternoon.