This photo shows an aerial view of the Qianhai free trade zone in Shenzhen, Guangdong province. (PHOTO / CHINA DAILY)

Addressing the Legislative Council on Wednesday, Christopher Hui Ching-yu, secretary for Financial Services and the Treasury, said Hong Kong has been focusing on five major areas – including people’s livelihoods, Hong Kong’s unique advantages in fundraising, and the city’s offshore renminbi pool – to drive the implementation of 30 measures on financial reform and innovation to support the development of the Qianhai Cooperation Zone.

The Opinion on Providing Financial Support for the Comprehensive Deepening Reform and Opening Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (the Opinion), officially released in February 2023 by the central authorities, proposed 30 measures to fuel the development of financial market of the Qianhai Cooperation Zone.

Qianhai banks and enterprises are encouraged to issue renminbi-denominated securities products in Hong Kong, as the city is set to give full play to its unique advantages as an offshore renminbi business hub

Stepping up financial innovation to improve people’s livelihoods is prioritized among the measures, which is consistent with the Hong Kong government’s priorities, such as facilitating Hong Kong residents in opening a bank account on the Chinese mainland, and speeding up the establishment of an insurance aftersales service center in Qianhai.

READ MORE: Hong Kong, Qianhai vow to enhance trade cooperation

The Opinion supports Qianhai enterprises wishing to take advantage of Hong Kong’s position as a world-leading fundraising platform for exploring overseas markets. Qianhai venture capital institutions listed in Hong Kong, for instance, can enjoy a one-off reward of 2 million yuan ($278,002), according to the Qianhai authority. In addition, enterprises operating in the cooperation zone are welcome to issue green bonds and obtain green financing from banks in Hong Kong.

Qianhai banks and enterprises are encouraged to issue renminbi-denominated securities products in Hong Kong, as the city is set to give full play to its unique advantages as an offshore renminbi business hub, Hui said.

The Opinion encourages fund firms in Qianhai to actively participate in exchange-traded funds (ETF) cross-listing and mainland-Hong Kong mutual recognition of funds as part of its efforts to deepen cooperation between financial institutions in Shenzhen and Hong Kong. 

Also, “the study on lowering the entry requirement for Hong Kong investors in equity investment and expanding the business coverage of Hong Kong’s financial institutions in Qianhai is underway,” Hui revealed.

READ MORE: HK, Qianhai adopt 16 measures to push IP, innovation

The Hong Kong government has earmarked HK$12 million ($1.53 million) to launch a fintech internship scheme for post-secondary students in 2023-24, with the aim of facilitating students majoring in fintech in Hong Kong and other parts of the Guangdong-Hong Kong-Macao Greater Bay Area to work as interns in fintech enterprises in the area.

The Financial Services and the Treasury Bureau in March this year signed the Agreement on Enhancing Hong Kong-Guangdong Financial Cooperation with its Guangdong counterpart, to promote financial development in the Qianhai Cooperation Zone and further expand arenas for Hong Kong’s financial sector in the zone.

The SAR has established a task force with Shenzhen to strengthen mutual access between the financial markets of the two sides and jointly press forward with various financial cooperation projects, Hui added.