Proposal for Hong Kong, Shenzhen FTZ Submitted

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Mar. 6 – Members of the 11th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) have submitted a proposal for a free trade zone between Hong Kong and Guangdong Province’s Shenzhen.

The proposal was written by CPPCC National Committee member, Li Guikang, with political advisors Huang Chubiao and Zhang Guoliang.

It outlines a plan allowing mainland residents to buy Hong Kong stocks, futures and funds easier as well as allow Hong Kong residents to purchase A-shares or engage in futures trading in Shenzhen through simple application procedures.

“The zone can take good advantage of the Special Administrative Region’s free trade modes of cargo and personnel flow as well as foreign exchanges,” he said.

Zhang told Xinhua that cooperation between the two was “prompted by the opening-up the financial sector, ” and a free trade zone that could go beyond differing social systems.

Hong Kong is governed under the “One Country, Two Systems” system that maintains its capitalism even after the 1997 handover. On the other hand, Shenzhen, is one of the most economically vibrant areas in the country. It was one of the first four special economic zones set-up when China opened to market reforms in 1979 .

“We hope the zone could be a ‘special zone’ within the economic zone of Shenzhen, and be given some legislative rights in regulating finance and service sector,” said Zhang.

The 11th CPPCC National Committee holds its annual session for nine days and is attended by 3,000 delegates from all over the country.