Editorial | Hong Kong should prepare to cash in on bay area financial shake-up
- New and broad plans being rolled out within the Greater Bay Area will deepen and widen the mutual access of Hong Kong and Shenzhen in the financial markets
A series of new and broad plans being rolled out will deepen and widen their mutual access in the financial markets. The boundaries separating the two sides – at least when it comes to financial and economic integrations – are breaking down fast.
This will not only promote a convergence in the development and provision of financial and investment services and talent, but also facilitate the movement of people within the bay area.
Beijing has dealt Hong Kong a fine deck of cards that will be ours to lose. Under the new Wealth Management Connect, residents in the bay area can now buy cross-border financial products from the other side.
In the first direct offshore debt sale by a local mainland government, Shenzhen will sell government bonds in Hong Kong next month. And, in a new cooperative scheme for accountants, Hong Kong accounting firms will be granted greater access to the bay area market, especially in finance, technology and logistics.
This is happening together with the mammoth expansion of the Qianhai economic zone in Shenzhen, in which Hong Kong businesses will be allowed to use at least a third of the new land being set aside.
Beijing has long been leery about high debt levels of many local governments. Banks have tightened lending.
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