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Shanghai No Threat to Hong Kong as Financial Centre: HK Chief Secretary
Hong Kong chief secretary Donald Tsang on Wednesday said Shanghai posed no threat to the territory as regional financial centre.
Tsang told a business forum Shanghai's strengths were based on its natural sphere of influence in the mainland while Hong Kong would continue to be the driving force in acting as the fulcrum for the wider Asia-Pacific region and southern China, especially the Pearl River Delta.
"Those who have responsibilities extending from Seoul to Sydney and South Asia will continue to locate in Hong Kong," Tsang said.
Citing a government-backed Trade Development Council (TDC) study, he said the two centres were in fact complementary. Shanghai had a strong industrial base to support industrial research and development while Hong Kong had the edge in commercialising new technology.
"Hong Kong's premier role is as a financial centre serving the region. Its second role is a conduit for foreign capital inflows to the mainland. The main role for Shanghai is in mobilising domestic funds to fuel the mainland's economic reforms," Tsang said referring to the TDC report.
"Hong Kong is a key regional player. That is why we have some 3,000 Asia Pacific headquarters in Hong Kong, far greater than any other place in the region," he said.
Tsang added: "Shanghai has been helped by a huge dollop of investment from Hong Kong -- 42 percent of cumulative foreign investment through 1999.
"In fact, Hong Kong is by far the largest external investor in Shanghai.
"I do not see why Hong Kong people should be daunted by competitors from anywhere... Hong Kong has always had to be faster on its feet than our competitors just to stay ahead of the game.
"We've always succeeded against the odds. Competition is our middle name," he said.
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