Shenzhen unable to eclipse HK, researcher saysLocal | 19 Aug 2019 1:36 pm
An economic expert played down fears that Beijing's plan to boost Shenzhen's legal, financial, medical and social sectors will threaten Hong Kong's status as an international finance center, RTHK reports.
Under the plan announced over the weekend, the central government said Shenzhen will play “a key role” in science and technology innovation in the Greater Bay Area and will also be granted favorable policies including privileges in yuan internationalization.
According to the development goal, Shenzhen is to become a modern, international and innovative city by 2025 and a leading global city by the middle of this century.
But Andy Kwan, who is the director of the ACE Centre for Business and Economic Research, said Shenzhen eclipsing Hong Kong as a financial center is remote as the SAR has many advantages.
"It is very difficult to build something as a financial center. Yes, you can build something as an international, hi-tech city, like even a silicon valley Asia," he said.
But it is difficult to build a financial center as the mainland has capital control in place, he said. Kwan said that not only does Hong Kong not have capital control, it also has a very good common law legal system.
"The [mainland] system itself deviates a lot from the Western countries, especially in terms of law and order. So in this case, I don't think people should fear that Shenzhen will overtake Hong Kong."