HK wants deeper integration with mainland

Political advisers and national legislators from Hong Kong have called for deeper integration with the mainland economy, based on the pilot programs including the Guangdong Free Trade Zone and the Stock Connect.

"I am looking forward to free capital flowing between Hong Kong and Guangdong under the FTZ program. According to my understanding, free trade account has been realized in the Shanghai FTZ, and the model can be replicated," said Christina Cheung, director of Hong Kong-based South China Holdings, and a member of the National Committee of the Chinese People's Political Consultative Conference.

Based on the nation's boldest trial to partly open its capital accounts in Shanghai FTZ, companies can move funds efficiently through a two-way channel between its offshore entity and the unit inside the FTZ. Prior to this, almost all of the cross-border fund flows needed prior approval from the State Administration of Foreign Exchange.