HONG KONG, Nov. 10 (Xinhua) — Hong Kong’s top official said on Thursday that the upcoming Shenzhen-Hong Kong Stock Connect will strengthen Hong Kong’s role as an international financial center, opening a new chapter for interconnectivity of capital markets between China’s mainland and Hong Kong.
Leung Chun-ying, Chief Executive of Hong Kong Special Administrative Region (SAR), made the remarks when addressing a forum on the Shenzhen-Hong Kong Stock Connect and capital markets of China’s mainland and Hong Kong.
Leung said the Shanghai-Hong Kong Stock Connect launched two years ago has been of groundbreaking significance for promoting the two-way openness of mainland’s financial industry and internationalization of the Chinese renminbi (RMB).
Hong Kong has dual advantages of “One Country” and “Two Systems” which means the region is both a China’s international financial center and a financial hub for the world that enables Hong Kong to be a “super connector” for cross-boundary financial markets, Leung said.
The Shanghai-Hong Kong Stock Connect has been operating smoothly since its launch, which has accumulated many experiences for the upcoming Shenzhen-Hong Kong Stock Connect, the chief executive said.
The China Securities Regulatory Commission has signed a joint announcement with the Hong Kong Securities and Futures Commission on approving the establishment of the Shenzhen-Hong Kong Stock Connect mechanism.
The Shenzhen-Hong Kong Stock Connect will provide a new channel for the interconnectivity of stock markets between China’s mainland and Hong Kong, further promote the RMB’s cross-boundary flow and therefore strengthen Hong Kong’s role as an international financial center and offshore RMB hub, Leung said.