HK's role unique in China's development

HONG KONG - Hong Kong's success as a leading international financial center is based on its unique role in China's economic development, and as the renminbi internationalization goes further, Hong Kong will continue its irreplaceable contribution in China's financial reform, experts said in Hong Kong on Monday.

Addressing a forum held by The Chinese General Chamber of Commerce, the chief executive of the Hong Kong Exchanges and Clearing Ltd Charles Li said Hong Kong has played a unique role in China's reform and opening up in the last three decades, in terms of re-export trade, overseas foreign direct investment and preferred financing market for the Chinese mainland.

Li said Hong Kong always make irreplaceable contribution at some critical moment in China's development, and as China further internationalizes renminbi to export its capital in the next 20 years, Hong Kong will again play as a pilot in the financial reform by developing currency products and exchange rate linked products.

Financial secretary of the Hong Kong Special Administrative Region government John Tsang said Hong Kong will continue playing an important role in the new round of economic reform in China, as well as sharing the fruits.

Tsang said the city is prepared to welcome the reform and he expects the Hong Kong's economy in 2013 to be back on track, thanks to the economic recovery on the Chinese mainland.

Li said Hong Kong must be closely connected with the development on the Chinese mainland in order to maintain its international financial center status in the long run as the mainland provides the city with a strong local market which it lacks of.

Ma Jun, chief economist for Greater China at the Deutsche Bank said Hong Kong's financial segment will benefit from further progress in China's capital account liberalization and the internationalization of the renminbi in 2013, as the capital flow through the city will support the financial and banking sectors.

On the other hand, Yu Yongding, academician of the Chinese Academy of Social Sciences said Hong Kong will play an important role in China's capital account liberalization, but Hong Kong should also put focus on the development of real economy other than the financial sector.

"The whole world economy is going back to the real economy, therefore Hong Kong should value its real economy and the financial development in a more balanced direction."

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