Hong Kong's role as an international financial centre is unshakable in mid-to-near term, as the city has a well-established legal system and exclusive 'Chinese elements', according to the research report jointly issued by Bauhinia Foundation Research Centre and The Royal Institute of International Affairs. Although Chinese Government is mulling to make Shanghai as the largest Renminbi onshore international financial centre in 2020, the competitive advantages of Hong Kong are still hardly be eroded, and it is unlikely that Shanghai will replace Hong Kong as the international financial hub in near term. China is capable of owning two financial centres on its extensive economic system and they can work complementarily with each other in weakness and development potential.
Over the next few years, Mainland China, Hong Kong and Taiwan can be integrated into a multi-level financial trading platform, which can deepen the capital market and link Renminbi onshore and offshore market. A Renminbi flow-back mechanism may gradually take shape in Shanghai and Hong Kong.
HANG SENG BANK (00011)'s vice chairman and chief executive officer Margaret Leung believes that China can operate two financial centres in Hong Kong and Shanghai at the same time with its large economic system. (y)
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