Model Zone: Shenzhen and Products Funds

model zone: The government will support financial products and funds' mutual recognition among Shenzhen and the two special administrative regions of Hong Kong and Macao, the guideline noted, according to Global Times China. The move to boost Shenzhen's financial sector comes at a critical time, an expert said, as the riots in Hong Kong, which has played a crucial role in China's economic development, have seriously damaged the financial hub's international image. According to a guideline released by the central government on Sunday that supported the construction of Shenzhen into a model zone, the government will push the connection of the Shenzhen financial market with the markets in Hong Kong and Macao, according to a report by China Central Television. Some financial institutions in Hong Kong have moved elsewhere such as Singapore and New York. Li Daxiao, chief economist at Shenzhen-based Yingda Securities, told the Global Times that positioning Shenzhen as a key financial hub will help bring stability to adjacent Hong Kong, as it will play a major role in the Guangdong-Hong Kong-Macao Greater Bay Area development plan that is set to spur economic growth for the whole region. Under such circumstances, if Shenzhen could offer a better environment, they might consider not leaving Hong Kong or moving to Shenzhen, Liang Haiming, dean of the Belt and Road Institute at Hainan University, told the Global Times on Sunday. (news.financializer.com). As reported in the news.