Xia Baolong Concludes Two-Day Inspection Visit to Hong Kong, Focuses on Port Development and Shipping Industry.

Director of Hong Kong and Macao Work Office of CPC Central Committee and Hong Kong and Macao Affairs Office of State Council Mr Xia Baolong concludes inspection visit to Hong Kong (with photos/video)

The Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the Hong Kong and Macao Affairs Office of the State Council, Mr Xia Baolong, today (June 17) conducted the second day of his inspection visit to Hong Kong.

Accompanied by the Chief Executive, Mr John Lee; the Financial Secretary, Mr Paul Chan; and the Secretary for Security, Mr Tang Ping-keung, Mr Xia this morning visited the new Huanggang Port to learn about the redevelopment of the port.

Mr Xia then visited Kwai Chung Container Terminal 8 to understand the latest development of the shipping industry in Hong Kong. The National 15th Five-Year Plan Outline explicitly supports Hong Kong in consolidating and enhancing its status as an international shipping centre. During his visit, Mr Xia was briefed by the Secretary for Transport and Logistics, Ms Mable Chan, on the situation of the ports. He also exchanged views with the industry practitioners.

Mr Xia later met with Mr Lee and Principal Officials at Government House, where he also held discussions to exchange views with community representatives.

Mr Xia concluded his two-day inspection visit and departed Hong Kong in the afternoon.

FS attends Lujiazui Forum in Shanghai (with photos/video)

The Financial Secretary, Mr Paul Chan, arrived in Shanghai this afternoon (June 17) to begin his visit to Shanghai and Nanjing. In the evening, he attended the Plenary Session of the Lujiazui Forum and delivered a speech on “Empowering High-standard Financial Opening-up through Shanghai-Hong Kong Financial Synergy”.

Mr Chan said that the country has, for the first time, clearly set out in the 15th Five-Year Plan the acceleration of efforts to build a strong financial nation, providing Hong Kong and Shanghaiwith a shared mission. In the face of a complex geopolitical environment and a new round of technological revolution, international investors have growing demand for diversified asset allocation. Hong Kong and Shanghaishould give full play to their complementary strengths and work in synergy to jointly serve the country’s high-level two-way opening-up.

He pointed out that Hong Kong and Shanghai connect the Mainland’s enormous market on the one hand and global capital and international rules on the other, serving as important channels for international capital to allocate into Chineseassets. The mutual market access mechanisms between the two places have continued to expand and deepen. More than 70 per cent of the Mainland stocks held by foreign investors are allocated through Stock Connect, while about two-thirds of the Mainland bonds held by overseas investors are accessed through Bond Connect. This reflects international investors’trust in the institutional arrangements, settlement security and regulatory collaboration of the two places. He welcomed the announcement made today by the Chairman of the China Securities Regulatory Commission, Mr Wu Qing, supporting the launch of trading of five-year Renminbi government bond futures in Hong Kong in the near future, noting that this would help improve risk management tools for the Renminbi bond market and attract more international investors to participate in the Mainland government bond market.

Mr Chan said that co-operation between the capital markets of Hong Kong and Shanghaihas continued to deepen. As of May this year, 212 Shanghai enterprises were listed in Hong Kong, with a total market capitalisation of over HK$4.3 trillion. Last year, the Government of the Hong Kong Special Administrative Region and the Shanghai Municipal People’s Government signed the Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centres. This year, Hong Kong and the Shanghai Gold Exchange established a co-operation mechanism, while Hong Kong Exchanges and Clearing Limited and China Financial Futures Exchange will also sign a Memorandum of Understanding during this Forum, demonstrating that co-operation between the two places is moving from individual projects towards systematic linkage and synergistic development.

Looking ahead, he proposed two directions for co-operation. First, the two places should jointly open up full-chain fundraising and financing channels, promote more innovation and technology enterprises in pursuing two-way financing pathways, and jointly develop exchange-traded funds and index products. They should also promote co-operation in patient capital and long-term capital to support the development of emerging and future industries. Second, the two places should jointly enhance the international functions of Renminbi, enrich investment products and risk management tools, and promote the launch of more “China price” products denominated and settled in Renminbi. At the same time, Hong Kong and Shanghaican speed up efforts to promote the synergistic combination of “industries in Shanghai and offshore treasury in Hong Kong”, supporting enterprises to go global in a steadier and better manner.

Mr Chan said that Hong Kong is actively taking forward its first five-year plan to align more closely with the country’s 15th Five-Year Plan. Hong Kong and Shanghaihave long enjoyed complementary strengths and mutually beneficial co-operation, and there is broad room for synergistic development in the coming five years. He expressed the hope that the two places would make good use of the power of finance to create tangible value for enterprises and the public.

Others who delivered speeches in the relevant session of the Forum included the Vice Mayor of Shanghai, Mr Wu Wei; former Vice-Chairman of the China Securities Regulatory Commission and Vice-President of the China Society for Finance and Banking, Mr Fang Xinghai; the Secretary for Financial Services and the Treasury, Mr Christopher Hui; the Chief Executive Officer of the Securities and Futures Commission, Ms Julia Leung; andrepresentatives of financial institutions from Hong Kong and Shanghai as well as international think tanks.

Mr Chan will continue his itinerary in Shanghai tomorrow morning (June 18) and proceed toNanjing in the afternoon.