Page 184 - AmCham South China 2026 Special Report on the State of Business in South China

to-end process from planning to implementation. In October 2024, the central government
Led by the Deputy Financial Secretary, this
working group will comprise a dedicated project
supervision office to strengthen the co-ordination
and supervision of the approval process.
On the other hand, accelerating cooperation
with Shenzhen in various aspects and improving
synergy development is top agenda. In next 5
to 10 years, the Northern Metropolis Area will
be expected to become a new international
innovation and logistic hub and provide high-end
professional services.
A closer look: The Twin Cities, Three
Circles strategy
157
Hong Kong and Shenzhen have maintained close
interaction since China¡¯s reform and opening-up.
The concept of ¡°twin cities¡± refers to Hong Kong
and Shenzhen, while ¡°three circles¡± includes the
Shenzhen Bay Quality Development Circle, the
Hong Kong Shenzhen Close Interaction Circle and
the Mirs Bay/Yan Chau Tong Eco recreation/tourism
Circle. The Twin Cities, Three Circles initiative
covers the Shenzhen Hong Kong Boundary Control
Points Economic Belt, Shenzhen¡¯s most maturely
metropolitan core, and Hong Kong¡¯s Northern
Metropolis, where development potential is
enormous and resources for urban growth are
rapidly converging. Among them, the Shenzhen
Bay Quality Development Circle is located in
northwest Hong Kong and connected to Qianhai to
promote the development of high-end enterprises;
the Hong Kong-Shenzhen Close Interaction Circle
is located closely around Hong Kong¡¯s Kwu Tung
North and the Hong Kong-Shenzhen Innovation
and Technology Park, which can be linked to the
Liantang Internet Industry Cluster, to enhance the
innovation cooperation; the Mirs Bay/Yan Chau
Tong Eco-recreation/tourism Circle is expected
to be optimized into a protected area to increase
ecological value.
Expanded CEPA (Closer Economic
Partnership Arrangement) deal to further
158
enhance Hong Kong¡¯s competitiveness
157 The Chief Executive¡¯s 2021 Policy Address, https://
www.policyaddress.gov.hk/2021/eng/press.html
158 Gov.cn, https://www.gov.cn/yaowen/li-
ebiao/202503/content_7009691.htm
184
further liberalized the service sector by signing
the Amendment Agreement II to the Chinese
mainland and Hong Kong CEPA on services trade,
which came into effected on 1 March 2025.
This revised deal introduces new measures to
further open several services sectors, including
financial services, TV, motion pictures, tourism,
construction and related engineering services and
allows Hong Kong companies to gain a foothold
in the mainland markets. So far, the Chinese
mainland has opened up 153 service segments
to Hong Kong, accounting for 96% of all 160 WTO
service trade sectors.
¡°Fintech 2030¡± to build the financial
159
infrastructure of tomorrow
In November 2025, the Hong Kong Monetary
Authority (HKMA) unveiled its ¡°Fintech 2030¡¯¡¯
strategy. This ambitious plan, structured around the
DART pillars ? data, AI, resilience and tokenization
? is designed to create next-generation financial
infrastructure, with a comprehensive portfolio of
over 40 initiatives, including:
? Creating next-generation data and
payment infrastructure: The HKMA will develop
robust and future-ready infrastructure to support
secure, efficient and scalable data sharing as well
as bolster cross-border payment connectivity,
thereby creating new opportunities for all, from
unlocking credit and boosting trade finance
for enterprises, to enabling more personalized
financial services and facilitating easier cross-
border remittances for individuals.
? A new holistic ¡°AI x Authorized Institutions¡±
strategy: The new strategy will further drive the
comprehensive and responsible adoption of AI
across the financial sector in Hong Kong and
beyond, as well as develop shared, scalable AI
infrastructure and finance-specific models in
collaboration with industry stakeholders. By
leveraging AI, the HKMA aims to boost accessibility,
responsiveness and customization in banking
services while maintaining transparency and
accountability to ensure public trust.
159 Hong Kong Monetary Authority, https://www.
hkma.gov.hk/eng/news-and-media/press-releas-
es/2025/11/20251103-3/
185