Shanghai free trade zone ‘a threat to Hong Kong’

Filed under: Trade Corner |

HONG KONG (AFP)Asia’s richest man Li Ka-shing warned that Shanghai’s new free trade zone will have a “big impact” on Hong Kong, urging the city to up its game to avoid losing out, his office said Wednesday.

China will allow unfettered exchange of its yuan currency in its first free trade zone, according to draft plans revealed exclusively by AFP earlier September, in a bold push to reform the world’s second largest economy.

The proposals showed the new Shanghai FTZ as an international trade and financial centre, which analysts say would challenge the free economy of Hong Kong.

“It (the FTZ) will have a big impact on Hong Kong,” Li said, in a summary of remarks issued by his office to AFP Wednesday.
“The free convertibility of the yuan will be favourable in the development of Shanghai,” he said.

“If Hong Kong does not catch up, it will lag behind others,” Li added, saying that Hong Kong’s GDP is already lower than that of neighbouring city-state Singapore.

When asked if Shanghai could catch up with Hong Kong within five to 10 years, he said: “I do not want to predict. But it will be faster than most people expect.”

Asia’s richest man Li Ka-shing warns Shanghai’s new free trade zone will have a “big impact” on Hong Kong, seen here, urging the city to up its game to avoid losing out.

Li, 85, also warned that the pro-democracy movement Occupy Central could harm the economy.
“It will have a negative impact on the economy and will affect Hong Kong’s image as an international finance centre,” he said.

After starting out in business as a plastic flower-maker, Li now commands a vast empire through Cheung Kong Holdings and Hutchison Whampoa, with global assets in property, telecoms, utilities, ports and retail.

He has a net worth of around $31 billion, according to Forbes magazine.
Reports that he is selling his Hong Kong-based supermarket chain ParknShop, have triggered fears he was going to pull his businesses out of the city. But he has pledged not to leave Hong Kong.

“I love Hong Kong, I love the country. Cheung Kong and Hutchison Whampoa won’t be moved away from Hong Kong,” he said.

Li initially made the comments at a press lunch on Tuesday. The draft free trade zone plan for Shanghai showed the new zone would support the establishment of foreign and joint venture banks and welcome privately funded financial institutions.

At present, China’s banking sector is overwhelmingly dominated by state-run institutions.


13 Responses to Shanghai free trade zone ‘a threat to Hong Kong’

  1. supply all kinds of machine from China in Lusaka,Zambia.
    Agriculture machinery:Tractor,Agriculture Implement,Power MachineryEngine,Harvesting Machine,and so on.
    Food processing machinery:Food Mixer,Bone Saw,Food cutter,Pizza Oven,Proofer,Ice Cream Machine,Water Boiler,Bread Toaster,Popcorn Machine,and so on.
    Solar energy equipment:Solar Power System,Solar Panel,Solar Regulator,Solar Inverter,Solar Light,and so on.
    Construction machinery:Block and Brick Making Machine,Earth Moving Machinery,Earth Moving Machinery,Road Roller ,Crawler Excavator,and so on.
    More information,please visit

    September 27, 2013 at 6:42 am

  2. Shanghai Free-trade Zone is the first Hong Kong-like free trade area in mainland China. The plan was first announced by the government in July and official announce of start in Sept with major package of new policies, covering industries from financial services to shipping and transport, as part of its plan to create a Hong Kong-like free-trade zone in Shanghai. The Shanghai FTZ will first span 28.78 square kilometres in the city’s Pudong New Area, including the Waigaoqiao duty-free zone and Yangshan port and it is believed it may eventually expand to cover the entire Pudong district which covers 1,210.4 sq km of land. These area which could contain as many as 21 separate initiatives. Hence setting up a company in the area for local and foreigner investor could benefit from this incentive. Registration of a Company such as WOFE, JV, or Trading company could be a new trend in investing in China. Further research on company formation in Shanghai Free Trade Zone could be found at

    September 27, 2013 at 7:54 am

  3. Ңi, аfter reading this amazing piece ߋf writing i аm
    tοo glad to share my familiarity Һere with friends.

    Dealerships in Jacksonville FL
    September 25, 2014 at 9:29 am

  4. This article will help the internet people for building up new blog or even a weblog from start to end.

    Used Cars for Sale in Jacksonville FL
    January 16, 2016 at 1:06 pm

  5. When someone writes an article he/she maintains the idea of a user
    in his/her mind that how a user can understand it.

    Thus that’s why this post is perfect. Thanks!

    Silvia Odete Morani Massad
    September 5, 2017 at 4:32 pm

  6. Every weekend i used to visit this site, for the reason that i wish for enjoyment, since this this site conations actually good funny stuff too.

    mortgage loan
    September 6, 2017 at 2:24 pm

  7. I absolutely love your site.. Great colors & theme.
    Did you develop this amazing site yourself? Please reply back as I’m hoping to create my very own blog and would like
    to learn where you got this from or just what the theme is called.
    Appreciate it!

    estate agents
    September 6, 2017 at 8:48 pm

  8. Howdy! I’m at work surfing around your blog from
    my new iphone 4! Just wanted to say I love reading your blog and look forward to
    all your posts! Keep up the superb work!

    door edges
    September 7, 2017 at 1:19 am

  9. Thanks on your marvelous posting! I quite enjoyed reading it,
    you are a great author.I will make sure to bookmark your blog and will often come back at some point.

    I want to encourage one to continue your great work, have a nice morning!

    September 7, 2017 at 11:05 am

  10. Keep this going please, great job!

    available cheap stocks
    September 7, 2017 at 3:50 pm

  11. Hi there, You’ve done an excellent job. I will definitely digg it and personally recommend to
    my friends. I’m confident they will be benefited from this web site.

  12. Hi, i think that i saw you visited my weblog thus i came to “return the favor”.I’m trying
    to find things to enhance my web site!I suppose its ok to use
    some of your ideas!!

    car loans
    September 8, 2017 at 12:54 am

  13. Very great post. I just stumbled upon your weblog and wanted to mention that I have truly
    enjoyed browsing your blog posts. After all I will be subscribing for your feed and I’m hoping you write again very soon!

    September 9, 2017 at 2:23 am

Leave a Reply

Your email address will not be published. Required fields are marked *