Qianhai at the forefront of financial innovation, officials say

Qianhai and Hong Kong will provide complementary functions to one other to excel in the country's financial innovation and moving forward the internationalization of renminbi, officials said at a news conference held by the State Council Information Office on Thursday.

"Hong Kong has the world's deepest renminbi liquidity pool outside the mainland of over 600 billion yuan ($92.9 billion)," said Pan Gongsheng, deputy governor of the People's Bank of China. "It will provide strong support for the internationalization of renminbi."

The pilot scheme of cross-border renminbi business will be implemented in Qianhai at an early stage, which will help expand the depth and breadth of renminbi offshore businesses and consolidate Hong Kong's role as the world's largest offshore renminbi market, Pan added.

Qianhai serves as a testing ground for financial innovations and financial market opening-up. The area could also help in implementing the negative list for the financial industry as well as constructing a financial system that is compatible with international standards, he said.

Pan noted Qianhai can promote financial cooperation between the mainland and Hong Kong in areas such as green finance, fintech, financial technology, innovation and supervision.

Hong Kong Chief Secretary for Administration John Lee Ka-chiu said the Qianhai Plan has taken Hong Kong-Shenzhen cooperation to a new level, empowering the two places to better leverage their leading role as the two core cities in the Guangdong-Hong Kong-Macao Greater Bay Area.

The Hong Kong business sector and professional service personnel have been actively preparing for the new opportunities the Qianhai plan will bring to Hong Kong and its enterprises, Lee added.

The Qianhai plan was issued on Monday by the country's central authorities to deepen the reform and opening-up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.