MOTION ON “PROACTIVELY EXPANDING DEVELOPMENT OPPORTUNITIES IN THE GUANGDONG-HONG KONG-MACAO GREATER BAY AREA”
MR CHAN CHUN-YING (in Cantonese):
President, on 18 February 2019, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (“the Plan”) was formally promulgated, setting out clearly the strategic positioning in a few aspects, namely a vibrant world-class city cluster, a globally influential international innovation and technology hub, an important support pillar for the Belt and Road Initiative, a showcase for in-depth cooperation between the Mainland and Hong Kong and Macao, and a quality living circle for living, working and travelling. In fact, in the development of the Guangdong-Hong Kong-Macao Greater Bay Area (“the Greater Bay Area”) and in our country’s attempt to break new ground in pursuing opening up on all fronts, Hong Kong should be able to play an irreplaceable and proactive role. During the process, Hong Kong can also take this opportunity to identify new room for economic growth.
I thank Mr WONG Ting-kwong for moving this motion on “Proactively expanding development opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area” today so that Members of this Council can take this once-in-a-century opportunity to work together for the betterment of Hong Kong’s future.
In the development of the Greater Bay Area, the edges of Hong Kong arising from “one country, two systems”, and its economic system of being totally market-driven and in line with international standards are able to help the Greater Bay Area in better capitalizing on its comprehensive advantages in relation to the experience with the early and pilot implementation of the industry system during reform and opening-up of the Mainland, the experience with high concentration of key factors of innovation, and its relatively high degree of economic marketization and internationalization. Our edges can thus provide some new support to the national development of a modern and open economic system which dovetails with the international arena.
The professional service industries of Hong Kong are highly mature. We enjoy the status as an international financial centre, maritime centre, trade centre and aviation hub, and our status as an international financial centre has demonstrated Hong Kong’s core competitiveness in its development of service industries. I believe that the financial industry of Hong Kong should be able to play a leading role in promoting the coordinated development of the Greater Bay Area.
The Greater Bay Area has a very solid foundation in cross-boundary finance. At present, the banking sector in Guangdong, Hong Kong and Macao has an aggregate asset value of more than RMB42,700 billion with total bank deposits amounting to US$4,700 billion, and both levels are higher than those of New York Bay Area, San Francisco Bay Area and Tokyo Bay Area. Besides, 12 Hong Kong-funded banks have opened more than 180 branches in Guangdong, while Guangdong-funded banks have over 80 places of business in Hong Kong. The number of Guangdong-funded enterprises listed in Hong Kong market is more than 200, ranking first among the provinces and cities in the Mainland.
While the development of the Greater Bay Area will promote economic and trade exchanges between Guangdong and Hong Kong as well as cross-boundary economic activities, the demand for cross-boundary financial services from the enterprises and residents in the Greater Bay Area is anticipated to rise rapidly. When the hinterland of the traditional services of Hong Kong’s financial industry can be extended to the city cluster of the Greater Bay Area, a constant flow of business development opportunities will be generated, including those related to bank loans, issuance of bonds, insurance, capital financing for listing purpose and financial management business.
Under the city cluster development planning framework of the Greater Bay Area, the banks in the Greater Bay Area can provide Hong Kong with a series of convenience services like account opening, payment, foreign exchange and financial management, as well as banking cards and cross-boundary payment service. The scope of banking services in the Greater Bay Area can cover diversified places of consumption for clothing, food, housing and transport, so that the residents in the Greater Bay Area can pay cross-boundary livelihood bills like water bills, education fees, property management fees, health care bills, etc. with ease.
Nevertheless, despite certain successful experience in enhancing connectivity between the financial markets of Hong Kong and the Mainland, compared with New York Bay Area, San Francisco Bay Area and Tokyo Bay Area, the inter-connectivity of markets, cross-boundary flows of key resources like capital and personnel in our Greater Bay Area, under the premises of “one country, two systems”, three customs territories and three currencies, have to be fostered with joint efforts of the whole region in pursuit of breakthroughs in some central policies.
Cross-boundary Renminbi (“RMB”) business is after all the key area of financial collaboration and will become the core in the financial market development of the Greater Bay Area. As at the end of 2017, the cumulative amount of cross-boundary RMB trade settlements in Guangdong was $13,870 billion, while the total amount of cross-boundary RMB trade settlements in Guangdong, Hong Kong and Macao amounted to $9,930 billion, accounting for a rather high percentage of 71.6% of the cumulative amount of cross-boundary RMB trade settlements in Guangdong. Off-shore RMB business is one of the core advantages of Hong Kong’s financial market. We should take this opportunity to consolidate our development in this aspect so that we can serve the Belt and Road financial needs. Therefore, the Government should promote the coordinated development of RMB business in the Greater Bay Area.
In the following, I would like to respond to the comments made by some Members earlier on the financial development for the convenience and benefit of the public. Mr HO Kai-ming just mentioned e-wallets. In order to use e-wallets in the Mainland, the main difficulties lie in the need to open a Mainland bank account and have a Mainland mobile telephone number. However, a local bank has lately announced the introduction of related services on a pilot basis. The public can open Mainland bank accounts in Hong Kong and can also use the convenience services provided by certain telecommunication companies. I believe that through this new service, together with the gradual expansion of applicability of e-wallets in Hong Kong as well as connectivity of e-wallets between Hong Kong and the Mainland, the public can enjoy great convenience in travelling and consumption. In the discussion of the Plan yesterday, I also mentioned the financial measures concerning cross-boundary financial management and cross-boundary mortgages, and Secretary James LAU of the Financial Services and the Treasury Bureau undertook to take the initiatives forward. I believe that very soon, we can see the implementation of more cross-boundary facilitation measures.
President, since the Plan is only a framework, collective wisdom within the Greater Bay Area is needed to fine-tune some measures before implementation. Hence today, I will support the original motion and the amendments that set out positive suggestions but will be strongly against those amendments which are not based on facts.
President, I so submit.