Hong Kong and Shanghai, China’s international and domestic financial centres, used to talk about competition more than collaboration. Now the bigger context of geopolitical tension has thrust Hong Kong to the forefront of Beijing’s commercial expansion strategy amid an American tariff and tech war aimed at containing China’ rise.
Shanghai and Hong Kong have signed a pact to connect the nation’s premier onshore commercial centre with its offshore financial hub. This was the first agreement signed since the annual Lujiazui Forum began in Shanghai’s financial zone in 2008.
Now they can play to each other’s uniqueness and strengths. An example is to be found in US threats to delist Chinese companies from its stock exchanges. As a result they are looking elsewhere to raise capital for expansion. That is where one of Hong Kong’s greatest strengths comes into play. The two cities’ action plan will see more mainland firms…
