At the Lujiazui Forum, Hong Kong Financial Secretary Paul Chan set out two priorities for closer financial co-operation between Hong Kong and Shanghai and highlighted expanding cross-border market links. In the speech, he called for fuller two-way fundraising and financing channels for innovation and technology companies, wider joint development of exchange-traded funds and index products, and stronger collaboration to expand Renminbi-denominated investment and risk-management tools. He also welcomed China Securities Regulatory Commission support for launching five-year Renminbi government bond futures in Hong Kong in the near term, saying the product would strengthen hedging tools for the Renminbi bond market and support international participation in Mainland government bonds. Chan framed the proposals around the complementary roles of Hong Kong and Shanghai in linking Mainland markets with global capital and international rules. He pointed to the scale of existing market-access arrangements, noting that more than 70 per cent of Mainland stocks held by foreign investors are held through Stock Connect and about two-thirds of Mainland bonds held by overseas investors are accessed through Bond Connect. He also cited broader capital-market integration, including 212 Shanghai enterprises listed in Hong Kong with a combined market capitalisation of more than HKD 4.3 trillion as of May, last year's action plan for collaborative development of the two financial centres, a new co-operation mechanism with the Shanghai Gold Exchange, and a planned memorandum of understanding between Hong Kong Exchanges and Clearing and China Financial Futures Exchange. Looking ahead, Chan said the two centres should also support longer-term and patient capital for emerging industries and accelerate the combination of industrial activity in Shanghai with offshore treasury functions in Hong Kong to support companies expanding internationally.

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