Hong Kong and Shanghai have entered into a cooperative agreement aimed at advancing captive insurance and insurance-linked securities, as announced by the Chinese government. This collaboration is part of a broader effort to bolster the financial capabilities of both cities.
In a joint statement, officials from the governments, financial regulators, and exchanges of Hong Kong and Shanghai convened in Hong Kong to discuss various initiatives. Among the key topics were enhancing cooperation in Belt and Road project risk management, captive insurance, and insurance-linked securities.
The meeting also highlighted discussions on the latest developments within the China (Shanghai) Pilot Free Trade Zone, focusing on cross-boundary Renminbi business, securities, futures, insurance, financial technology (fintech), and green finance. Talent exchange was emphasized as a crucial aspect of this collaborative effort.
Both sides committed to enhancing mutual market access programs like the Shanghai-Hong Kong Stock Connect, Bond Connect, and Swap Connect. They plan to closely collaborate on implementing recently announced measures and explore further integration of their securities markets.
Furthermore, there is an intention to strengthen cooperation in green finance product development, services, and innovation. Exchange and collaboration among fintech enterprises in both locations are also priorities under this partnership.
The Financial Services and the Treasury Bureau of the Hong Kong Special Administrative Region (HKSAR) government, along with the Shanghai Office for Advancing International Financial Centre Development, will lead regular meetings to foster ongoing exchanges and financial cooperation between Hong Kong and Shanghai.
