‘Two sessions’ to ‘focus on Hong Kong’s financial role, Northern Metropolis’

Hundreds of Hong Kong politicians and business leaders head to Beijing on Tuesday for the nation’s annual “two sessions”, with observers expecting discussions to focus on the city’s role as an international financial centre and the Northern Metropolis megaproject. The annual session of the country’s top political advisory body, the Chinese People’s Political Consultative Conference (CPPCC), will commence on Wednesday, followed by the National People’s Congress (NPC), the country’s legislature, on Thursday. The two major political gatherings are expected to deliberate and approve the full text of the 15th five-year plan, which will set the country’s development road map through 2030. Xia Baolong, director of the Hong Kong and Macau Affairs Office (HKMAO), is scheduled to meet local delegates in a closed-door session on Tuesday, the South China Morning Post has learned. Chief Executive John Lee Ka-chiu will also travel to Beijing on Tuesday to attend the NPC’s opening meeting. He earlier said that Hong Kong would formulate its first five-year plan to align with the national one. The 15th five-year plan, unveiled last October, pledged to support Hong Kong in becoming a high-end talent hub while consolidating and strengthening its role as an international financial, shipping and trade centre. The blueprint also called for deeper integration between Hong Kong and mainland China in areas such as the economy, trade, science and technology, and culture. Lau Siu-kai, a consultant to the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said he expected Beijing to highlight Hong Kong’s financial role during the two sessions, particularly in advancing the internationalisation of the yuan. “China is promoting the internationalisation of the renminbi and reducing reliance on the US dollar,” Lau said. “It aims to encourage wider use of the renminbi.” He pointed to Chinese President Xi Jinping’s remarks in January, in which the leader urged the nation to build a “strong currency” that was widely used in international trade, investment and foreign exchange markets, and that could eventually become a global reserve currency. “I expect China will issue more renminbi bonds in Hong Kong to cement the city’s position as an offshore renminbi hub,” Lau said. “This will enable the world to access renminbi more easily through Hong Kong for various purposes. “It would not be surprising to see greater emphasis on financial aspects [during the two sessions], because it is too important for the long term.” Lau added that the Northern Metropolis – a megaproject near the city’s border with the mainland that aims to turn 30,000 hectares (74,132 acres) of land into new engines for economic growth – could also be incorporated into the national five-year plan. “[If it is mentioned], it means that Beijing attaches great importance to the Northern Metropolis and will further step up policy and resource support,” he said. Hong Kong members of the NPC and CPPCC have also put forward proposals aimed at aligning the city’s development with the 15th five-year plan. Common themes among the suggestions include strengthening the city’s role as a finance centre, and as a hub for shipping, logistics and gold trading. Henry Tang Ying-yen, a member of the CPPCC Standing Committee, proposed introducing a “dual-counter” trading mechanism in the Stock Connect scheme for mainland stocks, enabling international investors to diversify their yuan holdings more effectively. He also pushed for permitting investors from the mainland to buy Hong Kong stocks in yuan through the trading link. “By utilising of Hong Kong’s offshore capital market as an international financial centre appropriately, we can facilitate smoother financing flows between the mainland and the rest of the world while advancing the internationalisation of the renminbi,” Tang said. NPC deputy Andrew Yao Cho-fai proposed to develop a “combined port” strategy in the Greater Bay Area, with a dedicated mechanism to divert freight from Nansha and Shenzhen ports to Hong Kong to help retain the city’s cargo throughput. Yao also urged Beijing to encourage state-owned enterprises and mainland banks to settle physical gold deliveries in Hong Kong, while calling for relaxed declaration and taxation requirements on gold purchases by mainland tourists. “By enhancing appeal to international investors, Hong Kong can help improve China’s influence in the global gold market,” Yao said. Rock Chen Chung-nin, another NPC member, sought Beijing’s support for developing Hong Kong into a gold trading hub by establishing a bullion reserve, diversifying yuan-denominated gold products and optimising the tax environment. In January, Hong Kong signed an accord with the Shanghai Gold Exchange to establish a cross-border clearing platform, a move aimed at strengthening the city’s position as a global gold trading hub and capitalising on the current market boom for the precious metal.

‘Two sessions’ to ‘focus on Hong Kong’s financial role, Northern Metropolis’

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Meetings of Chinese People’s Political Consultative Conference and National People’s Congress begin on Wednesday and Thursday respectively

Meetings of Chinese People’s Political Consultative Conference and National People’s Congress begin on Wednesday and Thursday respectively