Shanghai, Hong Kong sign financial cooperation plan

The Action Plan for the Collaborative Development of Shanghai and Hong Kong International Financial Centers was signed on June 18, when the highly anticipated two-day industry pageant Lujiazui Forum kicked off in Shanghai.

The plan outlines 38 measures across six priority areas, including enhancing infrastructure links between the two cities, building an integrated financial product and service system, and leveraging the complementary strengths of their offshore financial markets.

Strengthening market connectivity

The two cities will further develop platforms such as Bond Connect and Swap Connect, improving cross-border and offshore financing channels for Chinese firms expanding abroad and promoting high-quality development of the Belt and Road Initiative. The plan also supports positioning Shanghai and Hong Kong as global hubs for renminbi asset allocation and financial risk management.

New areas of cooperation include cross-border clearing infrastructure, integration of gold trading and related products, cross-border applications for the digital RMB, and support for Shanghai-based financial institutions looking to expand reinsurance services via Hong Kong.

Promoting financial innovation

The plan emphasizes collaboration in technology finance, green finance, and digital finance to better serve the real economy and fill financing gaps in strategic sectors. Shanghai and Hong Kong will promote the broader adoption of technologies such as artificial intelligence and blockchain in asset management, insurance, and settlement systems.

Policy measures will also aim to support innovation-driven enterprises. For example, insurers will be encouraged to extend coverage to new pharmaceuticals and medical technologies developed in both cities, bolstering the life sciences sector.

Improving institutional coordination

Regular exchanges between financial regulators will be institutionalized, with stronger joint support for key financial institutions. The cities will also deepen cooperation in data sharing, regulatory standards alignment, and talent mobility — working toward a market-oriented, rules-based, and globally competitive financial ecosystem.