Chen Maobo: Shanghai and Hong Kong are complementary and synergistic, and work together to open up the entire financing chain and promote the internationalization of the Renminbi.

On June 17, Hong Kong Financial Secretary Paul Chan Mo-po spoke at the Shanghai Lujiazui Finance & Trade Zone Development Forum, stating that for the first time in the "14th Five-Year Plan", the country clearly proposed accelerating the construction of a financial powerhouse, indicating a common mission for Shanghai and Hong Kong. Facing a complex geopolitical environment and a new round of technological revolution, international investors' demand for diversified asset allocation is increasing daily. Shanghai and Hong Kong should leverage their complementary advantages, collaborate, and jointly serve the country's high-level two-way opening. Shanghai and Hong Kong are benefiting from this positive international trend of seeking change. Last year, Hong Kong's IPO fundraising amount topped the global charts again; cross-border wealth management surpassed Switzerland; international financial center rankings remained in the top three, with only a slight difference from London and New York. The market value and liquidity of the Shanghai Stock Exchange have also continued to rise. The scale, depth, and development potential of the capital markets in Shanghai and Hong Kong have become the most important channels for international funds to allocate assets in China. Behind these developments is the international capital's vote of confidence in China's development through action, as well as the affirmation of the two markets' commitment to openness, continuous innovation, national advancement in science and technology, economic stability, and rapid growth. He pointed out that Shanghai and Hong Kong connect mainland China's vast market on one end and global capital and international rules on the other, serving as an important channel for international capital to allocate assets in China. The cross-border connectivity mechanisms between the two regions continue to expand and evolve, with over 70% of mainland stocks held by foreign investment distributed through the Stock Connect, and about two-thirds of offshore investors' holding of mainland bonds entering through the Bond Connect. This reflects international investors' trust in the coordination of the regulatory systems of the two regions. He welcomed the announcement by the Chairman of the China Securities Regulatory Commission, Wu Qing, to support the recent launch of five-year RMB government bond futures trading in Hong Kong, noting that this will help improve risk management tools for the renminbi bond market and attract more international investors to participate in the mainland bond market. Paul Chan Mo-po stated that the cooperation between the capital markets of Shanghai and Hong Kong continues to deepen. As of May this year, 212 Shanghai companies listed in Hong Kong with a total market value exceeding HK$4.3 trillion. Last year, the Hong Kong Special Administrative Region Government and the Shanghai Municipal Government signed the "Shanghai-Hong Kong International Financial Center Collaborative Development Action Plan". This year, Hong Kong and the Shanghai Gold Exchange established a cooperation mechanism, and Hong Kong Exchanges and Clearing Limited and China Financial Futures Exchange will also sign a cooperation memorandum during this forum, indicating that cooperation between the two regions is moving from a single project to a systemic coordinated development. Looking towards the future, he proposed two cooperation directions: firstly, jointly opening up the entire chain of financing channels and promoting more technology innovation enterprises to establish two-way financing paths, jointly developing exchange-traded funds and index products; and promoting cooperation between patient capital and long-term capital to support the development of emerging and future industries; secondly, jointly enhancing the international function of the RMB, enriching investment products and risk management tools, promoting more "China-priced" products settled in RMB; at the same time, Shanghai and Hong Kong can accelerate the promotion of a coordinated combination of "industrialization in Shanghai, overseas finance in Hong Kong", supporting enterprises to go global more steadily and effectively. Paul Chan Mo-po stated that Hong Kong is actively advancing its first five-year plan, closely aligning with the national "14th Five-Year Plan". Shanghai and Hong Kong complement each other's long-term advantages and mutually beneficial cooperation. There is a vast space for coordinated development in the next five years, and he hopes that both regions will make good use of their financial strength to create tangible value for businesses and the public.