Hong Kong and Shanghai will sign a deal to increase collaboration in the financial sphere at the Lujiazui Forum on Wednesday, as the cities strengthen links to better withstand the implications of geopolitical tensions.
The agreement would map out a blueprint for cooperation in “multiple layers and fields”, according to people familiar with the matter. Speculation is buzzing that the two cities will expand the “connect” schemes that allow cross-border trading and start trials of financial derivative products involving foreign currencies and commodities.
Details would emerge after discussions in a closed-door meeting on Thursday that would be attended by Christopher Hui Ching-yu, secretary for Financial Services and the Treasury, according to a separate source who was briefed on the matter.
Closer integration between the two metropolises would put China in a better position to cope with the risk of a financial decoupling from the US, where a cohort of Chinese companies trading on the New York Stock Exchange and the Nasdaq face possible delisting.
