Lin Min

MAYOR Xu Zongheng on Thursday urged Shenzhen and Hong Kong authorities to take steps toward the integration of the capital markets in Shenzhen and Hong Kong.

During an address to the city’s annual legislative meeting, Xu said Shenzhen would enhance cooperation with Hong Kong in a wide range of fields, including making an effort to integrate the capital markets in both cities. He did not elaborate.

Experts say both markets can explore ways to develop cross-market business.

Xu also promised to lobby for an offshore Renminbi center to be jointly established by Shenzhen and Hong Kong governments. In February, the People’s Bank of China, the country’s central bank, said it would “actively consider establishing a Hong Kong offshore center for the Renminbi” in response to a proposal from the Chinese People’s Political Consultative Conference (CPPCC) on the steps that should be taken in opening up China’s financial system.

With the yuan becoming more popular in Hong Kong, analysts see an increasing need for a Renminbi trading center in the special administrative region. However, the establishment of such a center would be quite complicated given that the yuan is yet to become fully convertible.