Hong Kong minister outlines four strategies to support mainland firms' global expansion at Shanghai forum
Hong Kong's Secretary for Financial Services and the Treasury outlined four strategies to support mainland Chinese companies going global, emphasising Hong Kong's role as a financial hub. The speech highlighted offshore yuan advantages, capital markets, treasury management and commodity connectivity
Hong Kong's Secretary for Financial Services and the Treasury outlined four key directions to support mainland Chinese companies' overseas expansion during a speech at the '2026 Shanghai-Hong Kong Cooperation and Exchange Forum' in Shanghai on 30 October. Speaking at the event organised by Shanghai Pudong Development Bank, the minister said Hong Kong would leverage its unique advantages under 'one country, two systems' to serve as a 'super-connector' and 'super-value-adder' for Chinese firms going global.
The first direction focuses on strengthening Hong Kong's offshore yuan hub. The minister noted that Hong Kong has the world's largest offshore yuan liquidity pool and handles the majority of global offshore yuan settlement. With the yuan business fund arrangement quota rising to 500 billion yuan from July, liquidity channels have been further eased, allowing companies to conduct cross-border yuan financing, settlement and exchange more efficiently.
Second, the minister highlighted Hong Kong's multi-layered capital market as a financing channel for Shanghai state-owned and technology enterprises throughout their life cycles. Hong Kong's stock market remains a top global IPO platform, while international bond financing leads Asia. Green and sustainable bond issuance has also ranked top in Asia for several years. The government is optimising tax concessions for family offices and asset management, attracting global private equity and capital.
Third, the government is implementing a corporate treasury centre and cross-border risk management support package. The 'Hong Kong Corporate Treasury Centre Development Action Plan' offers a reduced profits tax rate of 8.25 per cent, encouraging mainland companies to set up treasury centres or regional headquarters in Hong Kong. The government is also promoting captive insurance companies and insurance-linked securities to help firms manage overseas operational and catastrophe risks.
Fourth, the minister called for deeper connectivity between Shanghai and Hong Kong in gold and commodity markets. This includes collaboration in gold and precious metal cross-border trading, pricing, settlement and risk hedging, as part of the national push to build a commodity trading ecosystem. A cross-departmental support task force has already helped hundreds of mainland companies establish international platforms in Hong Kong, generating significant first-year direct investment in advanced manufacturing, digital economy, green energy and cross-border trade.
The minister concluded by reaffirming that Hong Kong's first five-year plan and the 2026 policy address have prioritised supporting mainland enterprises' overseas expansion, strengthening financial collaboration, and improving investment, financing and risk management ecosystems. He expressed hope the forum would foster practical cooperation between Shanghai and Hong Kong in these areas.
