Hong Kong and Shanghai signed an accord consisting of 38 initiatives for promoting collaborative development of the two cities as international centers in the areas of financial market interconnection, cross-border financial services innovation, green financial development, and cooperation between science and technology and finance.

On Wednesday, the “Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centers” was signed by representatives of the Financial Services and the Treasury Bureau of the Hong Kong Special Administrative Region government, and the Shanghai Office for Advancing International Financial Center Development, witnessed by Hong Kong Financial Secretary Paul Chan Mo-po and Shanghai Executive Vice-Mayor Wu Wei, who is also a member of the Standing Committee of the Shanghai Municipal Party Committee.

“The action plan implements the country's requirements to enhance the competitiveness and influence of Shanghai as an international financial center, as well as to consolidate and enhance Hong Kong's status as an international financial center,” Chan said at the signing ceremony held at the annual Lujiazui Forum in Shanghai.

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The finance chief added that it is of great significance that the action plan will deepen the interconnection between the two financial markets, enrich cooperation and linked development in multiple fields, and serve the strategy to develop the country as a strong financial powerhouse.

Regarding financial market interconnection, both cities agreed to cooperate in four areas: cross-border clearing, interconnection in gold products and transactions, new application scenarios in cross-border payments of digital renminbi, and Shanghai’s financial institutions expanding their reinsurance business through Hong Kong.

The second aspect of the collaborative development concerns Chinese mainland enterprises going global.

“The action plan proposes specific measures to support mainland enterprises to go global by more efficiently connecting financial institutions, payment networks, and fund management systems in Shanghai and Hong Kong,” Chan said.

“This is because mainland firms are more interested in and have the need to lay out their global supply chains and industrial chains and explore new markets, amid the backdrop of the country’s high-level two-way opening up and the current international geopolitical situation,” the finance chief added.

The third aspect of the action plan concerns the docking of standard and financial innovation. The two financial centers will strengthen cooperation in the fields of financial standards, product innovation, and information sharing, and promote the wider application of technologies such as artificial intelligence and blockchain in asset management, insurance, and payment settlement scenarios.

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At the same time, both cities are committed to supporting the development of the innovation and technology industry through financial policies. For example, the action plan encourages insurance companies to include new drugs and equipment in the policy coverage for promoting the development of the biopharmaceutical industry.

“With the current complex global political and economic situation and volatile financial risks, Shanghai and Hong Kong need to work together to strengthen financial competitiveness and seize opportunities amid the changing situation,” Chan said.

“With the strong support of the country, the two international financial centers of Hong Kong and Shanghai will join forces to create a greater linkage and synergy effect, contribute more to the country's (development) as a strong financial power, and inject more Chinese wisdom and strength into the development of the global financial market,” he said.