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Political advisors call for FTZ between HK, Shenzhen

By (Xinhua)
Updated: 2009-03-06 10:09

Chinese Political advisors from Hong Kong have called for the set up of an"innovative free trade zone" between Hong Kong and Shenzhen city in neighboring Guangdong province.

According to the proposals, mainland residents can buy stocks, futures and funds of the Hong Kong market more conveniently and Hong Kong residents can buy A-shares or engage in futures trading in Shenzhen via simple application procedures.

The proposal, backed by more than 100 members of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), was drafted by Li Guikang, CPPCC National Committee member, fellow political advisors Huang Chubiao and Zhang Guoliang.

Zhang told Xinhua that financial cooperation between Hong Kong and Shenzhen was "prompted by the opening-up the financial sector, " and a free trade zone could go beyond the two cities' different social systems.

Hong Kong retained its capitalism after it returned to China's rule in 1997 under the principle of "One Country, Two Systems" and "Hong Kong people governing Hong Kong" with a high degree of autonomy.

"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.

Shenzhen, one of the four special economic zones Deng Xiaoping decided to set up in 1979 to pioneer the opening-up and reform drive, has since been transformed from an obscure fishing village to a gleaming metropolis. It is now seen as a window to China's economic reforms.

Political advisors call for FTZ between HK, Shenzhen

"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," Zhang said, adding such move could truly remove disparities of laws between Hong Kong and Shenzhen within the zone.

He said economic integration among Hong Kong, Macao and Shenzhen was "a quite good concept" but feasible projects were still few at present. "Further actions should be taken to promote such a zone.

The 11th CPPCC National Committee, China's top political advisory body, convened its annual full session on March 3 which will last for nine days.