China Daily: HK will gain from nation’s reforms: CE

Hong Kong still has unparalleled competitive advantages, such as the rule of law, to benefit from and contribute to the country’s new round of economic reforms, Chief Executive Leung Chun-ying said at the China Daily Asia Leadership Roundtable forum on Tuesday.
Tuesday’s forum and panel discussions, themed “Financial development in China and implications for the global economy”, were jointly presented by China Daily Asia Pacific, the Pacific Trade and Development Conference (PAFTAD) and the Hong Kong Institute for Monetary Research. It was also part of the PAFTAD conference series hosted in Hong Kong.
Leung’s keynote address at the forum came just days after Beijing outlined the route map to carry on deeper social and economic reforms on the mainland.
He said it was too soon for the local administration to formulate a comprehensive view on the 300-plus initiatives adopted last week at the Third Plenary Session of the 18th Central Committee of the Communist Party of China, but he believes the city will certainly benefit from them.
“We can gain new development synergies through the national reform and opening-up, so that Hong Kong’s economy will accelerate and the living standards of Hong Kong people will rise. At the same time, this is important -- to make our contributions to the nation,” he said.
Hong Kong has always been a premier international gateway for trade and investment into and out of the mainland, Leung said, and the city will continue to serve businesses across the border as the “chief knowledge officer” with its vast experience and well established links.
“We know that Hong Kong has benefited significantly from its free and open economic strategies in tandem with the gradually opening-up (and) reform policies in the Chinese mainland since 1978. And this will not change,” he said.
Since it was given the responsibility to test, launch and develop new initiatives for yuan liberalization, he said, the city is now the largest center for offshore yuan business, backed by sophisticated infrastructure and the largest pool of yuan capital outside the mainland.
But as financial reforms move along, Hong Kong is feeling the heat of competition. Shanghai has just set up its pilot free trade zone, whereas global financial hubs like London and Singapore are gearing up their efforts to share a bigger slice of offshore yuan businesses.
It was too early to tell how the Shanghai zone would impact on Hong Kong, Leung said, but the city has always welcomed competition as a driver of growth and progress, as such competition in offshore yuan business shall expand the range and volume of products globally.
“The pie, with the fast growth of the Chinese economy, is getting bigger than the growth of the slices and everyone has a role to play. There is enough for everyone around, whether in the country, in the region or in other parts of the world,” he said.
Furthermore, Hong Kong still possesses unparalleled competitive edge when compared to mainland and overseas cities. One important attribute for financial services that Hong Kong holds onto, he said, is the rule of law and an independent judiciary.
But the city is not complacent with its strength. Leung said the Financial Services Development Council (FSDC), the advisory body that has just completed six reports, “has been proven to be very effective” and the government, together with the regulators, will study the reports in detail.
Earlier, the CE said before the weekly Executive Council meeting that he has read all six reports prepared by the FSDC. The government has emphasized its regulatory role in the past and while that is essential, “we cannot forget the part that involves developments.”