Abstract

As the second largest economy in the world, China plays a pivotal role in the global supply chain. However, facing the pressure of the global economic downturn and the drastic changes in the international environment—with the rise of deglobalization, geopolitical uncertainties and challenges—the financial industry should be utilized to strengthen scientific technological innovation and manufacturing transformation. Continued upgrading is the key to promoting high-quality economic development.

Over the past few decades, Hong Kong has attracted influential financial institutions around the world through its internationally integrated financial system and mature transit trade processing industry, thus gathering a large amount of international capital, establishing and developing a multi-level financial market system, including monetary market, capital market and foreign exchange market on this basis. As an international financial center, Hong Kong plays a significant role not only in supporting the local economy but also in promoting mainland trade and attracting foreign investment.

Shenzhen, with its manufacturing industry as a pivot, has significant advantages in market development and technological innovation, which constitutes the basis of brick-and-mortor financial activities and underlines the needs of financial services. In recent years, Shenzhen has experienced strong development of local financial institutions and a high concentration of innovative and entrepreneurial capital.

Relying on the advantages of Hong Kong's international financial center and Shenzhen's "Double Zones”, the construction of the Shenzhen and Hong Kong “Twin Cities” international financial center is a cooperative and innovative development of the financial industry, releasing the "multiplier effect" of finance to boost China's economic development, the realization of a high level of openness, and the maintenance of financial security and stability. It is also an inevitable part in the context of global finance, fierce market competition and changes in the economic landscape.

Starting from the necessity of building a joint international financial center with Shenzhen and Hong Kong, this report analyzes the urgent challenges faced by Hong Kong, Shenzhen, the Greater Bay Area and even China in the field of financial markets by comparing the strengths and weaknesses of Hong Kong and Shenzhen. It also draws comparisons between Hong Kong-Shenzhen with the characteristics of world financial centers such as New York, London, Tokyo, and Singapore, and puts forward corresponding solutions and suggestions.