Following the signing in 2010 of the Memorandum of Understanding Concerning
Advancing Hong Kong-Shanghai Financial Co-operation (MOU), officials held their
second working meeting on January 6, 2012, in Shanghai, to enhance financial
co-operation between the two places.
Led by Hong Kong’s Permanent Secretary for Financial Services and the
Treasury, Au King-chi, and the Vice-Director of the Shanghai Municipal Government
Financial Services Office, Fan Yongjin, representatives of the two cities discussed
financial issues of mutual concern, including ways to foster links in financial
services and products, enhance training and exchange of financial talents, as
well as strengthen co-operation between financial institutions in Hong Kong
and Shanghai.
Au briefly introduced to the Shanghai representatives the development focus
of the financial services industry in Hong Kong, including promoting international
capital formation functions, fostering offshore renminbi (RMB) business, serving as the
preferred platform for mainland China's financial enterprises and institutions to go
overseas, and strengthening the asset management business.
On financial services and products, the two sides considered the joint promotion
of investment in Shanghai's equity market through the RMB Qualified Foreign
Institutional Investor scheme. They also discussed the listing of ETFs (exchange-traded
funds) tracking Hong Kong stocks on the Shanghai Stock Exchange and explored
the possibility of introducing more ETF products.
The two sides also had discussions on the issue of H shares (the shares of
companies incorporated in mainland China that are traded on the Hong Kong Stock
Exchange) and RMB bonds by Shanghai financial institutions and enterprises in
Hong Kong; information, personnel and comprehensive business co-operation between
the Shanghai Futures Exchange and Hong Kong Exchanges and Clearing Limited;
as well as collaboration in the development of marine insurance.
There had also been held in Shanghai, on the previous day, the Second Plenary
Session of the Hong Kong-Shanghai Economic & Trade Co-operation Conference,
co-chaired by Hong Kong’s Chief Executive Donald Tsang and the city’s
Mayor Han Zheng.
At the meeting, the Hong Kong and Shanghai signed various co-operation agreements covering,
for example, business and investment; finance, air transport, maritime and logistics;
tourism, exhibition and conferences; and innovative technology.
It was agreed that Hong Kong and Shanghai should strengthen ties, by pushing
ahead for measures under the Closer Economic Partnership Arrangement and helping
Shanghai enterprises enter the overseas market via Hong Kong’s international
platform. Hong Kong pledged to support the establishment of the joint venture company
of the stock Exchanges of Hong Kong, Shanghai and Shenzhen.
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