Optimistic about Hong Kong’s finance and technology strengths and its strong international connectivity, scholars from Shanghai called for deeper collaboration between the two cities at the second Shanghai-Hong Kong Science and Finance Forum on Friday.

Industry insiders in Hong Kong also urged the special administrative region government and local businesses to expand their efforts and forge ties with Shanghai in these fields.

In 2023, Shanghai Advanced Institute of Finance — established by the Shanghai government at Shanghai Jiao Tong University in 2009 — established an international laboratory for science and finance in Hong Kong, with the aim of nurturing talent in finance and technology and facilitating collaboration among businesses from Hong Kong, the Chinese mainland and overseas.

READ MORE: Why Shanghai Expo is big business for Hong Kong

Cheng Shijun, executive dean of the Shanghai Advanced Institute of Finance, said that, over the past year, the lab has established connections with research institutes and companies both at home and abroad, and has held promotion events and road shows via the Hong Kong platform.

The lab was set up in Hong Kong with the aim of leveraging the city’s international ties, and especially its favorable policies for financial innovation, Cheng said, noting that the Hong Kong government’s bold and supportive measures for Web3 is a good example.

The government in late 2022 issued a policy statement on the development of virtual assets in Hong Kong, saying that “Hong Kong is open and inclusive towards the global community of innovators engaging in related businesses”.

As of the end of 2023, the number of Web3 firms in government-backed business hub Cyberport had increased to 210, with founders from over 20 countries and regions.

“Shanghai and Hong Kong share many similarities,” said Jiang Xinghao, vice-president of Shanghai Jiao Tong University. Both cities are highly open and cosmopolitan, have attracted a wealth of professionals, and are committed to developing into world-class hubs for technology and finance.

These similarities and complementary advantages open the door for more cooperation opportunities, Jiang said.

Comparing investment in research and development in Hong Kong, Shanghai, and Shenzhen in Guangdong province, Christopher Chao Yu-hang, vice-president (research and innovation) of the Hong Kong Polytechnic University, said more than half of Hong Kong’s investment in R&D is made by universities, while in both Shenzhen and Shanghai, the funding is led by businesses.

Chao said, Hong Kong’s small market size of around 7 million consumers is not conducive to promoting commercialization, although local universities are good at research. “We need to reach out and cooperate with mainland cities like Shanghai and Shenzhen.”

READ MORE: HK, Shanghai cooperation will create strong synergy

Hong Kong can learn from these cities and encourage companies to increase their spending on scientific research, Chao said.

Since the establishment of the Innovation, Technology and Industry Bureau in 2015, the Hong Kong government has invested more than HK$200 billion ($25.72 billion) in innovation and technology as of the end of 2023, mainly allocated to research facilities, funding programs and international promotion.

The forum also featured eight tech companies from the mainland and Hong Kong demonstrating their latest developments in fields including biomedicine, robotics, and smart construction.

Contact the writer at irisli@chinadailyhk.com