Hong Kong, Shanghai can cooperate to mutual benefit
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Hong Kong's financial services sector can take advantage of the "One country, Two systems" principle to help China's mainland further open up while helping Hong Kong become a global financial hub, Secretary for Financial Services and the Treasury of the Hong Kong government K C Chan said Sunday.
Chan also said Hong Kong could work together with Shanghai in the gradual internationalization of the mainland market, and the two cities could be in a complementary relationship and help each other.
Chan made his remarks in an interview with official website of Hong Kong Pavilion at World Expo 2010, which was conducted three days ahead of a high-level Hong Kong Special Administrative Region (SAR) Finance Forum to be held in Shanghai on July 21.
The forum, under the theme of "Stronger Links, Strong Markets: Hong Kong, the Mainland and the World," would be co-sponsored by the Financial Services and the Treasury Bureau, Invest Hong Kong ( InvestHK), and Hong Kong's bourse operator Hong Kong Exchanges and Clearing Limited. InvestHK is the government agency responsible for attracting and facilitating foreign direct investment into Hong Kong.
About 400 top-level financial services professionals, along with government officials and policy makers, are expected to attend it.
Chan said the event would help to address the challenges in the current global financial environment.
"Nowadays the financial markets change so quickly. We are going to discuss several topics during the forum -- first, the new regulations and situation of the financial environment; second, the financial reforms on the Mainland; third, the opportunities presented by the internationalization of the renminbi," Chan said, referring to the Chinese currency yuan.
COOPERATION BETWEEN HONG KONG, SHANGHAI
The forum would also address the positioning of Shanghai and Hong Kong as well as opportunities for financial co-operation between the two cities, whose relation was described by Chan as " complementary."
According to the official, Hong Kong, as a financial hub, has many advantages -- with financial market fully connected with the rest of the world, the legal system measures up to international standards, and with free flow of capital and information.
"Hong Kong is a market connected to the rest of the world, and its internationalization is unique," he said.
While Shanghai, he said, was the most important financial market in the mainland which requires an important financial center such as Shanghai to support the continuous opening-up and economic development of the nation.
Following the mainland's gradual internationalization, the internationalization of Shanghai as a financial center will increase.
Shanghai and Hong Kong should be complementary with each other. Hong Kong is a fully internationalized market, and can work together with Shanghai in the gradual internationalization of the mainland market.
"We will be in a complementary relationship and helping each other," said Chan.
SUCCESS OF "ONE COUNTRY, TWO SYSTEMS"
Chan said Hong Kong's financial industry was the best example of the successful implementation of the "One Country, Two Systems" principle.
"Two Systems" means the connection between Hong Kong's financial regulatory systems and the rest of the world, and the city's free flow of capital is an important demonstration of "Two Systems," he said.
What is "One Country"? Chan said "One Country" meant that Hong Kong's target for financial services was China's mainland as enterprises and investors in the mainland wanted to go global through Hong Kong.
"As Hong Kong develops as a financial center, we hope that we can match with the economic and financial market development strategy of our country. We have 'One Country', we have 'Two Systems', and this contributes to our success in the financial industry," he said.
Through Hong Kong's advantages and under the unique "One Country, Two Systems" environment, the city could help enterprises in the mainland to go global and participate in international financial services, he said.
"On one hand we help the continuous opening-up of China's mainland. On the other, we help ourselves to become an international financial center," he added.
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