On his first visit to mainland China’s commercial and financial hub since becoming Hong Kong’s top official in July 2022, Lee expressed confidence in the prospects of creating synergies between both cities to bolster technological innovation.
CIIE 2023: Li Qiang promotes Chinese consumers as fix for global economy
CIIE 2023: Li Qiang promotes Chinese consumers as fix for global economy
Lee and Hong Kong Financial Secretary Paul Chan Mo-po arrived in Shanghai on Saturday for the CIIE, the world’s largest import trade fair that kicked off on Sunday. Lee plans to return to Hong Kong on Monday.
On the weekend Lee met the top two officials in Shanghai, Communist Party secretary Chen Jining and Mayor Gong Zheng, to discuss cooperation in the fields of technology, finance, education and youth development.
“We hope to establish some platforms to encourage innovation in both cities,” Lee said. “In the finance sector, our cooperation is also of benefit to both sides.”
His remarks were aimed at playing down fears of rivalry between the two cities, with their respective stock exchanges battling it out to draw initial public offerings from promising start-ups, while companies compete for global talent in fields like artificial intelligence, biotechnology, robotics, and smart mobility.
Lee said closer links between Shanghai and Hong Kong were desirable because experience in the past two decades proved that both cities could prosper by avoiding direct competition.
Currently, Shanghai is recognised as Chinese yuan’s onshore trading centre while Hong Kong is known as an offshore yuan hub.
In 2014, the stock connect scheme linking the Shanghai and Hong Kong exchanges was launched, allowing investors to trade shares on each other’s markets via local brokerages.
“Officials must be trying to copy the success of the [stock] connect system to consolidate Shanghai-Hong Kong economic relations,” said Ding Haifeng, a consultant at Shanghai financial advisory firm Integrity. “For start-ups, they certainly want to enjoy advantages in both cities since Hong Kong’s tax rate is low while Shanghai gives them access to a vast consumer market.”
Lee also said the CIIE, an annual trade show that began in 2018, would be instrumental in helping China further open up its market to the world.
More than 400 Hong Kong companies, from food processors and wine trading firms, to banks and logistics companies, are exhibiting their products and services at the expo, according to Lee.
Speaking at the opening ceremony, Chinese Premier Li Qiang said the strength of the consumer and a further opening up of the mainland Chinese market could give a much-needed boost to the stalling global economy. It was the latest sign that Beijing was trying to improve business ties with its major trading partners.