In this file photo, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor holds a press conference at Central Government Offices on Sept 22, 2020. (PARKER ZHENG / CHINA DAILY)

HONG KONG - Chief Executive Carrie Lam Cheng Yuet-ngor envisions collaboration between Shenzhen and Hong Kong in the field of “new economy”, including innovation and technology and the creative and design industry, to gather steam to take itself to the next level. 

In an interview with a Shenzhen-based television channel, Lam spoke about her blueprint for enhancing the SAR’s collaboration with its neighboring innovation and technology hub – the Shenzhen Special Economic Zone. 

Shenzhen is also known as the city of design, a territory that the Hong Kong Special Administrative Region government is keen to support, said Chief Executive Carrie Lam Cheng Yuet-ngor 

The report came two days before a grand celebration marking the 40th anniversary of the establishment of the special economic zone. 

Shenzhen is also known as the city of design, a territory that the Hong Kong Special Administrative Region government is keen to support, Lam said. 

In her opinion, the two cities will not be direct competitors due to their own particular advantages.

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The Basic Law guarantees Hong Kong a set of competitive advantages in free market economy, an internationally renowned judiciary and abundant professionals in service industries, she said.

She is confident that Hong Kong-Shenzhen cooperation is bound to enjoy the fruits of prosperity together as long as the HKSAR continues to leverage these strengths to complement Shenzhen’s thriving technological advantages.

Another domain that Lam set her eyes on for closer Hong Kong-Shenzhen cooperation is higher education, which would pave the way for deeper collaboration in innovation and technology and the transfer of research and development findings. 

The Hong Kong leader identified shortage of talent and land as two possible barriers. Shenzhen and Hong Kong, if they teamed up, would be very attractive to talents if their favorable policies for talents are combined, she said. 

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Lam said talks with the Shenzhen government are underway for cooperation in promoting the two cities in tie-in sales to lure talents from overseas or other areas of the mainland.

The goal is to make the collaboration seamless and unobstructed, including the flow of travel, capital, information and logistics, she said.

If the collaboration between the two cities in the past is anything to go by, it will reach new heights  should the central government continue to allow pioneering, ground-breaking policies to be carried out in Shenzhen, Lam added.

Hong Kong is still Shenzhen’s largest source of external capital, with nearly 80,000 Hong Kong enterprises operating in the mainland city.

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In the journey of the reform and opening-up of Shenzhen and the nation, Hong Kong has been both a contributor and a beneficiary, Lam said.

Witman Hung Wai-man, principal liaison officer for Hong Kong at the Shenzhen Qianhai Authority, said the collaboration in the “new economy” could assist the two cities to achieve a win-win situation. 

During a phone interview with China Daily on Tuesday, Hung said Hong Kong could realize the value of its scientific research using the industrial resources in the Guangdong-Hong Kong-Macao Greater Bay Area while Shenzhen could promote its cutting-edge technological innovation to the world and expand the market through Hong Kong’s world-class financial market. 

If a free flow of capital is achieved between the two cities, capital in the mainland - especially non-renminbi currency - could be consolidated through Hong Kong’s asset allocation, which will greatly facilitate the mainland’s international mergers and acquisitions, Hung said. 

At the same time, Hong Kong’s asset management industry could also use that to its advantage, he added.

Hung also noted the challenge involved in the flow of capital, the most noteworthy being financial security - a national security priority in his opinion. He said there should be extra attention devoted to preventing capital flight, or supervising foreign investment in some sensitive industries, among other risks.

Nancy Ip Yuk-yu, the vice-president for research and development at Hong Kong University of Science and Technology, said cooperation projects between Hong Kong universities and the Chinese mainland could support and encourage Hong Kong scientists to participate in the national science and technology development.

Her university has established in Shenzhen various laboratories in the field of biomedicine, new material, marine environment, and automatic control.

Ip told China Daily that she hopes scientific researchers from the two places can work together through these platforms to tackle key scientific problems and contribute to the development of science and technology in light of the country’s needs. 

“The changeable international environment in recent years has brought new requirements for our researchers, especially the accumulation and breakthrough in some fundamental scientific studies, which are urgent needs at present,” said Ip, who is also a member of the Chinese Academy of Sciences.