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Expanded Qianhai economic zone could benefit Hong Kong’s financial sector
- Expansion calls for yuan internationalisation, greater interconnection with Hong Kong markets and deepening cooperation on green finance
- Economic zone would increase to 120 square kilometres
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The soon-to-be expanded Qianhai economic zone in neighbouring Shenzhen could be a potential boon for Hong Kong’s financial sector, particularly as banks, asset managers and professional services firms look to tap rising incomes and expanded business opportunities in the Greater Bay Area, according to financial and business leaders.
Originally created in 2009 to foster cooperation between Shenzhen and Hong Kong, the economic zone is already home to 11,500 companies with Hong Kong ties. It is expected to increase in size from 14.9 square kilometres to 120.6 square kilometres as part of a new expansion plan, which could entice more businesses to open operations in the area.
The expansion is part of a push to further integrate the Hong Kong and Macau economies in the bay area along with nine cities in Guangdong province.
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“Qianhai is so close to Hong Kong that the two cities can work together in many aspects. Hong Kong can act as an offshore centre for international investors to invest in Qianhai, while local financial firms can set up in Qianhai to serve mainland customers,” said Tom Chan Pak-lam, the chairman of Hong Kong Institute of Securities Dealers, a local brokerage industry body.
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The expansion plan included few details, but called for further opening up of the financial sector, support for the internationalisation of the yuan, greater interconnection with the Hong Kong financial markets and deepening cooperation between bay area cities on green finance.
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