Hong Kong will benefit from Shanghai’s free-trade zone as the city will get a “bigger slice” of a “larger pie” created by the greater opening of Chinese markets, Hong Kong Exchanges & Clearing Ltd. Chief Executive Officer Charles Li said.
The zone in China’s financial hub will accelerate the opening of capital markets and encourage more capital flows into Hong Kong, Li wrote in a blog post today.
“A larger pie will bring benefits for all competitors,” he wrote. “We are competing with our peers, but more importantly, we are competing for growth.”
Li’s comments come as Financial Secretary John Tsang and other Hong Kong officials work closely with Chinese authorities to study potential cross-listings of stocks between exchanges on the mainland and in the special administration region. Hong Kong has been ruled separately since the city returned to Chinese rule in 1997.
Shanghai’s free-trade zone was inaugurated on Sept. 29 as a testing ground for reduced state controls over interest rates, the currency and investment that Premier Li Keqiang has signaled may later be implemented more broadly in the world’s second-largest economy.