This Sept 17, 2020 Aerial photo shows the Houhai area in Nanshan District of Shenzhen, Guangdong province. (CHEN YEHUA / XINHUA)

Hong Kong and Shenzhen should step up integrated development, innovation in governance systems, and strengthen regular communication to raise bilateral cooperation to a higher level, experts said on Friday.

They made the remarks at the 2022 Shenzhen-Hong Kong Cooperation Forum, co-organized by Shenzhen-based think tank China Development Institute and Hong Kong-based One Country Two Systems Research Institute.

The cooperation model between Shenzhen and Hong Kong has gone from the ‘front shop, back factory’ to ‘joint innovation’ through the past decades. Now, they need to move forward to ‘integrated development’.

 Allen Yeung, member of Digital Economy Development Committee

“The cooperation model between Shenzhen and Hong Kong has gone from the ‘front shop, back factory’ to ‘joint innovation’ through the past decades. Now, they need to move forward to ‘integrated development’,” said Allen Yeung, a member of Digital Economy Development Committee set up by Hong Kong Special Administrative Region government.

“The two have tremendous room for integrated development in terms of industry chain, innovation chain and talent chain.”

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Yeung used the semiconductor sector, which China is making great efforts to develop to achieve self-sufficiency in the face of growing curbs by the United States, as an example.

The signing into law of the CHIPS and Science Act by the US President Joe Biden earlier this month could impede China’s development in the technological sector, he said, but Hong Kong and Shenzhen can work together to help with the country’s drive with their complementary strengths.

“Hong Kong can focus on design and the development of Electronic Design Automation tools, while Shenzhen can work on pilot plant tests and mass production,” Yeung said.

Carmen Kan Wai-mun, a Hong Kong Legislative Council member, said it is vital for Hong Kong and Shenzhen to innovate their governance systems.

She suggested that matters related to the Guangdong-Hong Kong-Macao Greater Bay Area development be led by Hong Kong’s chief executive and coordinated by secretary-level officials and the neighboring cities of Hong Kong and Shenzhen set up a regular communication mechanism.

Hong Kong and Shenzhen could also join hands to seek support from the central government to launch a Lok Ma Chau Loop scheme or an updated version of the Qianhai scheme to push forward with joint technological innovation and deeper integration, Kan said.

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E Zhihuan, chief economist of the Bank of China (Hong Kong), highlighted Hong Kong’s new opportunities emerging from the Regional Comprehensive Economic Partnership Agreement and the country’s decarbonization push.

“As an integral part of the Greater Bay Area, Hong Kong is a pivot linking the region and RCEP members. … Against the backdrop of regional economic integration, Hong Kong could take advantage of its edges to focus on trade in service and financial investment to help rebuild supply chains in the region and enhance its trade and financial status,” she said.

Meanwhile, the city could help raise funds for the country’s green development, given its unique role as a bridge between international investors and those in search of capital on the Chinese mainland, E added.

“As Hong Kong’s green finance ecosystem improves, assets increase further, financial products and market players diversify further, and compliance, information disclosure and performance appraisal systems get more advanced, the city will gradually develop into an international green finance hub.”

sally@chinadailyhk.com