The financial industries of Hong Kong and Shanghai both have promising prospects due to the growth in income and wealth in China and economic development in Asia, a top economist said Wednesday.
Andrew Sheng, president of Hong Kong-based think tank Fung Global Institute and adviser to the China Banking Regulatory Commission, said the financial industries in both cities also have the chance to carry out deep reforms in the coming decade to better serve the real economy.
Sheng is optimistic about Hong Kong’s leading position in finance, and said the market structure and development model of each city do not have to be the same.
But he said that because the Shanghai free trade zone replicates Hong Kong’s free trade port status, Hong Kong has to change strategies in the new competitive environment.
The central government has already set up various copies of Hong Kong in Qianhai, Hengqin and Nansha, he added.
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