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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.
Financial Secretary Paul Chan Mo-po will be present for the signing of an action plan for collaborative development between the two cities on the opening day of the two-day forum in Shanghai, according to a statement from the Hong Kong government, which did not provide more details.
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 Shanghai and Hong Kong 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.
The agreement, called the Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centres, would mark the most significant cooperation between the cities since the launch of the Stock Connect scheme in 2014, which has evolved into the most popular conduit for foreign investors in China’s US$10.5 trillion yuan-denominated stock market.
It will be the first time for the forum, an annual fixture since 2008, to feature cooperation between Shanghai and Hong Kong in its opening session. The People’s Bank of China will host the gathering this year, with its governor Pan Gongsheng expected to deliver a keynote speech on financial reform and high-quality growth in the changing global economy.
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