Hong Kong Finance Secretary Paul Chan Mo-po. Photo: Lu Wenao/GT

The central government's new plan for deepening the opening-up of Shenzhen's Qianhai, South China's Guangdong Province, will offer "unlimited" opportunity for future development of the Hong Kong Special Administrative Region (HKSAR), especially in the financial sector, the HKSAR's financial chief said on Sunday.

The recently released national plan will further promote integrated development between the HKSAR and the mainland, with the focus on the internationalization of the yuan, which will enhance the city's position as a major offshore hub for the currency, HKSAR Financial Secretary Paul Chan Mo-po wrote in a blog post.

On September 6, the central government released a new plan to further accelerate opening-up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, one day after it rolled out a plan to build a Guangdong-Macao cooperation zone in Hengqin.

In the blog post, Chan addressed comparisons made by some between the Qianhai plan and the Hengqin plan and sought to allay concerns over potential impact of the Qianhai plan on the HKSAR. He said that the Qianhai plan is related to future prosperity and development of Hong Kong and has the potential for "unlimited opportunities" for the city.

Specifically, the plan would expand available space for the HKSAR's development, which will address the problem of insufficient space for industrial development due to the HKSAR's limited land mass. Moreover, it will enhance the momentum of industrial upgrading in the HKSAR and allow the city to gradually optimize and upgrade its industrial structure.

The city's development along with Qianhai also can provide a broader platform for young people, Chan added.

In terms of the cross-boundary wealth management connect, Chan said that for financial institutions, the market for financial products will expand significantly as the Greater Bay Area has the most robust economic development and the largest accumulated wealth in the country.

The program will meet various investment and risk management needs of mainland residents and broaden the channels for direct investment in mainland financial products for Hong Kong residents, Chan added.

On August 10, the pilot program, which was initially announced in June 2020, was officially launched. The connect enables residents in Hong Kong, Macao and nine cities in Guangdong to tap cross-boundary wealth management products distributed by local banks.

In light of the new Qianhai plan, it is critical for Hong Kong to form an in-depth understanding of the overall development framework and take advantage of new development opportunities, Chan said.