HONG KONG, Nov. 10 -- 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.
Charles Li, Chief Executive of Hong Kong Exchanges and Clearing, said at the forum that Hong Kong has made enormous contribution in the past 30 years to China's mainland in transshipment trade, direct investment and capital market. In the next 20 years, Hong Kong will become a major overseas center for the mainland people to allocate their wealth by channels such as Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect.
Li believed that thanks to a unique trading and clearing model of the two programs, mainland people could invest in many overseas projects and markets at home, and people outside Chinese mainland could also invest in China through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect.