Partnership pact: Shanghai Municipal Government Financial Services Office Director Fang Xinghai and Secretary for Financial Services & the Treasury Prof KC Chan sign a deal to promote dual development and co-operation between the two cities' financial services sectors.

Hong Kong and Shanghai have signed a deal to promote dual development and co-operation between the two cities' financial services sectors.

Secretary for Financial Services & the Treasury Prof KC Chan and Shanghai Municipal Government Financial Services Office Director Fang Xinghai signed the document today, witnessed by Financial Secretary John Tsang and Shanghai Vice-Mayor Tu Guangshao.

Prof Chan said Hong Kong and Shanghai should enhance co-operation for the country's financial development.

"As a highly international, liberal and institutionalised international financial centre, Hong Kong has rich experience and advantages in facilitating Mainland financial institutions to go international step by step, attracting foreign capital and introducing financial innovation," he said.

"Shanghai enjoys a prestigious position in mobilising capital, talent and financial institutions on the Mainland."

Co-operation objectives

The two cities will strengthen financial co-operation under the framework of the Hong Kong-Shanghai Economic & Trade Co-operation Conference and with the advice and support of the state's financial authorities.

The memorandum of understanding states the overall objectives for advancing financial co-operation between Hong Kong and Shanghai. Under the framework of the Closer Economic Partnership Arrangement, the two cities will enhance co-operation, facilitate each other and prosper together.

"This would also strengthen the international competitiveness of our country's financial services industry," he said.

The document also states priority areas for advancing financial co-operation between Hong Kong and Shanghai. These include enhancing co-operation in the development of financial markets, encouraging and supporting mutual establishment of financial institutions, and stepping up training and exchange of financial talent.

More exchanges

Hong Kong and Shanghai will strengthen ties between their financial organisations under their regulatory frameworks.

The document encourages the Shanghai Stock Exchange and Hong Kong Exchanges & Clearing to foster closer links over the listing of enterprises, development and collaboration of products as well as sharing of information.

Dialogue and exchange between the financial services sectors of Hong Kong and Shanghai will be improved.

The bureau and the Shanghai Municipal Government Financial Services Office will jointly take the lead to co-ordinate representatives of government departments, financial regulators and financial market organisations of the two cities to meet annually. Hong Kong and Shanghai will take turns to host the annual meetings.