Nov. 23 (Bloomberg) -- Hong Kong Chief Executive Donald Tsang said the Chinese government is committed to an Aug. 20 plan for letting the country's investors trade shares on the city's stock exchange.

Chinese Premier Wen Jiabao has affirmed the country's plan for implementing a pilot program that allows individual Chinese investors to buy and sell shares in Hong Kong, Tsang said today in Beijing, summarizing his meeting with Wen.

``Our priority is to guarantee financial stability when the plan is introduced,'' Tsang said at the end of a three-day visit to the Chinese capital. ``Our goal is to make the transition as smooth as possible. Implementation details still need to be discussed.''

Tsang and China's central bank agreed that a pilot program allowing mainland individuals to buy Hong Kong stocks will ``certainly'' go ahead, according to a statement by the Hong Kong government's press office, citing Tsang's meeting with the Chinese central bank's deputy governor Wu Xiaoling.

The city, which reverted to China's administration after being a British colony, will remain the ``priority'' for any experiments by the Chinese central bank for the yuan to become convertible, Tsang said, recalling his meeting with Wu.

Hang Seng Surges

Hong Kong's benchmark Hang Seng Index has surged as much as 47 percent after China unveiled plans for the pilot program on Aug. 20, rising today for the first time in three days. China's foreign-exchange regulator announced that month it will introduce a program to allow nationals with a Bank of China Ltd. account in Tianjin to buy Hong Kong equities.

The Hang Seng fell to a one-month low on Nov. 12 after a Credit Suisse Group report said the program had been delayed until the second quarter. The benchmark rose 2 percent to day to 26,541.09.

The stocks pilot program, also referred to as the ``through train,'' will be rolled out once outstanding issues are smoothed out, the Hong Kong press office cited the two officials as saying, without elaboration. Hong Kong will lend ``comprehensive'' support to the preparations, Tsang said without elaborating.

``We'll just have to be patient,'' he said today, without giving a timetable for implementing the plan.

Assessing Risks

Wen reiterated on Nov. 3 that the Chinese government needed more time to assess the risks to Hong Kong's financial system.

Separately, Tsang encouraged China's insurance watchdog to allow more mainland insurers to list in Hong Kong, the office said, citing his first-ever visit with Wu Dingfu, chairman of the China Insurance Regulatory Commission.

Tsang urged the CIRC's Wu to let Chinese insurers invest more of their funds in Hong Kong, as well as to have their money managed by the city's asset managers. In July, China issued new rules allowing the nation's insurers to invest up to 15 percent of assets overseas, an increase from a 5 percent cap earlier.

Tsang also asked China Investment Corp., the nation's $200 billion sovereign wealth fund, to keep Hong Kong in mind when choosing asset managers for the entity's overseas investments, the press office said, citing the chief executive's meeting with CIC Chairman Lou Jiwei.

It was Tsang's third annual work report visit to Beijing since becoming chief executive in 2005.

To contact the reporter on this story: Josephine Lau in Beijing at jlau22@bloomberg.net

Last Updated: November 23, 2007 06:26 EST