HONG KONG: As major listing destinations for Chinese companies, Hong Kong and Shanghai are more "cooperative and complementary than competitive", and could grow and benefit from each other in the coming years.

Hong Kong will continue to serve as "China's international exchange", and will widen its listing sources to maintain its position as Asia's largest listed bourse.

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That is the message from Paul Chow, chief executive of Hong Kong Exchanges and Clearing (HKEx), the operator of the world's seventh-largest bourse.

"Our three-year strategic plan for 2007-09 involves the major themes of reinforcing our position vis--vis the mainland," Chow told China Daily.

His remarks appear to address concerns that Shanghai will steal the luster of Hong Kong after an increasing number of mainland companies chose to list in the yuan-denominated A-share market instead of in Hong Kong.

The Shanghai market recently peaked after a five-year lull, having lured Hong Kong-listed mainland giants like Bank of Communications, China Mobile and China Construction Bank back to the home market.

Chow, however, sees more opportunities than challenges ahead. He said cooperation between Shanghai and Hong Kong, domestically and internationally focused respectively, would be beneficial to the mainland's robust economy.

With a bullish Shanghai market, the two bourses could both benefit from hosting more dual listings.

Chow said the Industrial and Commercial Bank of China's (ICBC) simultaneous dual listing set a good precedent, and that Hong Kong and the mainland had set up a working group to review arrangements for simultaneous listings.

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