"There is most certainly scope for more than one international financial center in China," said Ian Luder, Lord Mayor of the City of London.

"Hong Kong ... should not be fearful," he said. "Shanghai is not a threat to Hong Kong."

The SAR and London still have a lot of new business to gain as the size of the whole industry grows, Luder also said in Hong Kong.

"If you believe, as I do, the financial services sector is going to grow, it will need more centers to help service it," said Luder, who oversees London's financial district, known as the City.

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He said Hong Kong can profit from China's development by, for example, providing offshore services for the private retirement investments of the richer members of its aging population.

The mainland will also develop a number of regional financial centers, Luder said, noting that Chongqing could service the Upper Yangtze River area and the country's southwest.

Meanwhile, Luder said the mainland's sovereign wealth fund, China Investment Corp, is officially considering opening an office in London.

In the past couple of weeks, Luder has met with Jin Liqun, chairman of the board of supervisors of CIC, and Dai Xianglong, head of the National Council for the Social Security Fund. He previously held discussions with the State Administration of Foreign Exchange, which has its own investment fund.

Luder said he is "hopeful" the three funds will open offices in London.

Meanwhile, China Construction Bank (0939) chairman Guo Shuqing called on international institutions and foreign governments to issue yuan- denominated bonds in Hong Kong and Shanghai.

It is in the interests of the US government to see the yuan become a currency traded across the globe, Guo told Reuters in an interview in New York.

"I think the US government and the World Bank can consider the possibility of issuing [yuan] bonds," said Guo, who formerly worked as director of China's foreign-exchange regulator.