Hong Kong's New Financial Secretary Dismisses Fears Over Competition From Shanghai

Mary Swire, Tax-News.com, Hong Kong

05 March 2001

Hong Kong's financial secretary designate, Antony Leung, who replaces Donald Tsang when he becomes the SAR's Chief Secretary in April, has dismissed worries that Hong Kong might be overtaken by Shanghai as a financial centre. Instead, he said, there was scope for co-operation and collaboration between the two cities.

His comments come after the incoming director of the World Trade Organisation, Supachai Panitchpakdi, said in Hong Kong this week that Shanghai would emerge as a major competitor to Hong Kong. Whilst admitting that Shanghai was growing as a financial centre in its own right, Mr Leung said that Hong Kong would remain ahead of the game in the provision of financial services on a regional and international level, mainly due to its convertible currency and its advanced capital markets.

Quoted in the South China Morning Post, Mr Leung said: 'China is a large country that can support two regional centres. Shanghai serves its hinterland, which is the Yangtze River Delta, while Hong Kong's hinterland is the Pearl River Delta. Both can serve the country and work together to help the country to develop.'

At the Fifth Shanghai and Hong Kong Economic Development and Co-operation Conference in Shanghai last week, other key business figures supported Mr Leung's views on the relationship between Hong Kong and China. Chinese General Chamber of Commerce chairman, Robin Y H Chan, said Hong Kong's banks and brokerages stood to benefit from Shanghai's growing importance as a regional and international financial centre.

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