Hong Kong and Shenzhen need to speed up their integration including developing their pioneer cross-border yuan loan business, says an official from the State Council's Development Research Centre.
Lu Zhongyuan, a vice-president of the centre, yesterday said the governments of both cities had been advised to step up communication on economic co-operation.
'If they can't solve their problems, they will have to take them up to a higher level, and seek the support and understanding of relevant departments of the central government,' Lu told the China Political and Economic Forum organised by China Daily.
He said the Qianhai zone was an important platform for both cities to co-operate in developing high-end service businesses in finance, trade, commerce and innovation.
They must speed up their co-operation in developing their pioneer cross-border yuan loan business or risk losing out to the competition in offshore yuan businesses at home and abroad.
Hong Kong used to feel superior to the mainland because it was at the 'higher end' of the global value chain, but this mindset must change as Shenzhen and the rest of the country were moving up the ladder and closing the gap, Lu said.
Hong Kong must be 'open-minded' about how to co-operate economically with Shenzhen and think in terms of the future of the region, he said.