He cited a number of areas in which Shanghai could learn from Hong Kong, such as a freer and more flexible financial system, legal practices that meet international standards, better supervision and anti- corruption mechanisms.

Zhang believes that freer and more flexible policies for Shanghai will be vital to the future of the metropolis.

"While China's administrative system is not likely to change for the moment, Shanghai could take the lead to make a breakthrough," he said.

Zhang made his ideas known after serious concerns were voiced by local officials and economists about the future of Shanghai and what the city could rely upon after the 2010 World Expo and incessant investment-driven growth.

He also based his assertions on Shanghai's international past and its strong ability to learn from the outside world.

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