Hong Kong delegates attending the two sessions called for enhanced financial connectivity between Hong Kong and the Chinese mainland by facilitating free capital flow in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and attracting more mainland tech companies to raise funds in the international financial center.

Their suggestions coincide with the opening of the National Committee of the Chinese People’s Political Consultative Conference, China’s top political advisory body, on Tuesday. The National People’s Congress, the country’s top legislature, will open on Wednesday in Beijing, when Premier Li Qiang will deliver the annual government work report.

Henry Tang Ying-yen, a member of the Standing Committee of the CPPCC National Committee, proposed promoting the free flow of capital in the Greater Bay Area to help power the country’s economic growth.

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Tang’s suggestion would allow financial institutions in the Greater Bay Area to provide compliant financial services freely and enable a compliant free flow of capital within the 11-city cluster.

“This would enhance capital mobility within the Greater Bay Area, better leveraging Hong Kong’s role as an international financial center to add momentum to the region's economic growth,” said Tang, who is attending the annual meeting for the 13th time.

He said that the cross-border capital flow would be based on a closed-loop management system to prevent capital outflows from the country while maintaining financial security. “Funds would only circulate within the region or areas permitted by the country,” he added.

Tan Yueheng, a Hong Kong member of the CPPCC National Committee, has proposed measures to attract more mainland technology firms to list on the Hong Kong Stock Exchange to bolster the city’s status as an international financial hub while ensuring national financial security.

Tan, who is also executive director of the Bocom International Holdings, noted that the quality of listed companies is crucial for attracting investment, with international investors seeking markets that offer unique products that meet their needs.

“Attracting mainland tech companies and leading enterprises would optimize Hong Kong’s capital market structure and reduce the proportion of lower-quality listings,” Tan said. He sees this as the path for Hong Kong to challenge or eclipse the US technology board Nasdaq, positioning the city as the premier destination for global capital outside the US market.

The past decade has seen a series of landmark financial connect programs in bonds, stocks, and wealth management, linking the special administrative region and the mainland.

These programs allow international investors to trade eligible mainland financial products through Hong Kong brokers while enabling mainland investors to access certain international financial products through the international financial hub.

There are also discussions about establishing an IPO program linking the Hong Kong and mainland markets.

The country now limits citizens to exchanging yuan to the value of $50,000 annually, and requires regulatory approval for significant outbound investments. Its foreign exchange reserves stood at about $3.24 trillion as of December.

Politicians and business leaders say the existing quota system and eligibility restrictions limit further integration between Hong Kong and the mainland.

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Starry Lee Wai-king, Hong Kong’s deputy to the National People's Congress Standing Committee, suggested establishing a housing fund connect based on a closed-loop management system, allowing mainland professionals who plan to settle in the city under the talent attraction programs to bring capital to Hong Kong designated for home purchases.

The proposed funding program could be modeled after existing financial connect programs between Hong Kong and the mainland, she said.

Lee, also a Hong Kong lawmaker, said that the system would ensure national financial security while allowing talent from both regions to purchase homes in the area they settle in.

Contact the writer at tianyuanzhang@chinadailyhk.com