Hong Kong officials believe the establishment of mutual access between the stock markets of Shanghai and Hong Kong will enhance the city's position as an international financial center and an offshore yuan hub.

"We welcome and are encouraged by Premier Li Keqiang's remarks endorsing mutual market access between the stock markets of Shanghai and Hong Kong," Hong Kong Exchanges and Clearing Ltd Chairman Chow Chung-kong said in a statement on Thursday.

"The program is not only a major breakthrough for the opening up of the mainland's capital markets but also a great milestone for the development of Hong Kong as an international financial center. Hong Kong will again act as a bridge connecting the Chinese mainland economy and the rest of the world," Chow added.

HKEx Chief Executive Charles Li said: "We believe this development will pave the way for the further opening up of the Chinese mainland capital markets and help promote the internationalization of the yuan. We also believe this development will provide a new opportunity and create momentum for the further development of the Hong Kong capital market."

Chief Executive Leung Chun-ying said at the Boao Forum on Thursday that the mutual market access between the stock markets of Shanghai and Hong Kong will promote a healthy development of the capital market in Hong Kong and on the mainland.

Leung said Premier Li told him that the related departments will step up momentum for the implementation of the mutual market during the next few months. Leung expressed appreciation for the central government's support of Hong Kong's financial industries.

The chief executive pointed out financial industries, including the stock market, are very important to Hong Kong's economy. Although only 6 percent of the city's workforce is employed by these industries, they account for 16 percent of Hong Kong's total GDP.

Leung said he believes with the help of mutual access between the stock markets of Shanghai and Hong Kong, the city will further consolidate as an international financial center. Further, it will become a new driving force for Hong Kong's economy and continue to contribute to China's opening-up.

Financial Secretary John Tsang Chun-wah told Hong Kong media on Thursday that the move to connect the stock exchanges of Hong Kong and Shanghai is a step in the direction of mutual benefit. It is also significant in strengthening financial cooperation between Hong Kong and the mainland.

For Hong Kong, mutual market access between the stock markets will facilitate the strategic integration of Hong Kong and the mainland market. It will help in building up a healthy two-way circulation of onshore and offshore yuan. It will also increase the liquidity of Hong Kong's offshore yuan and consolidate Hong Kong's position as an international financial center and offshore yuan center, said Tsang.

Hong Kong Securities Professionals Association chairman Jeanne Lee Sai-yin said on Thursday mutual access between the stock markets of Shanghai and Hong Kong is a very good start. She believes it will boost the daily turnover of both Hong Kong and mainland stock markets.

Lee said the mutual access will increase investment channels for mainland investors. It will be beneficial to Chinese brokers and Hong Kong-listed mainland firms. In the longer term it will also benefit Hong Kong companies.

sophiehe@chinadailyhk.com

(China Daily USA 04/11/2014 page18)