Christopher Hui: HK, Shanghai can build complementary financial hubs

As the government sets out the city's own five-year plan, Secretary for Financial Services and the Treasury Christopher Hui says Hong Kong and Shanghai are at different stages of development as international financial centres and are complementary in their roles.

He says the two financial hubs are already collaborating, describing the relationship as "beneficial with no downside."

Hui adds that Hong Kong can help mainland companies including those based in Shanghai expand overseas through its international financial platform.

He says the national positioning is very clear — Hong Kong is to consolidate its role as an international financial centre while Shanghai is building one.

Responding to Beijing's recent crackdown on illegal outbound investment and whether it could dampen trade sentiment towards Hong Kong, Hui says stronger regulations and enforcement would instead reinforce the city's long-term financial stability with greater clarity and confidence in the operating environment.

He says Hong Kong's next phase of development should focus on building a more diversified financial ecosystem spanning equities, bonds, commodities and other asset classes while supporting the internationalisation of the yuan and enhancing the competitiveness of the city's financial markets across the entire value chain.