Louis Chen Xiaofeng says collaboration will consolidate HK’s prosperity and turn GBA into a core engine advancing high-standard opening-up.

As Hong Kong marks the 29th anniversary of its return to the motherland, the fruitful progress of Shenzhen-Hong Kong cooperation stands as a vivid testament to the success of the “one country, two systems” framework.

Over nearly three decades, cross-boundary infrastructure connectivity has matured, sci-tech and financial linkages have accelerated, and personnel exchanges have grown unprecedentedly close. This year’s Asia-Pacific Economic Cooperation (APEC) “China Year” ushers in a historic opportunity: The 33rd APEC Economic Leaders’ Meeting will be held in Shenzhen in November, while the APEC Finance Ministers’ Meeting will take place in Hong Kong in October. Serving as both a participant and co-organizer, Hong Kong will work alongside Shenzhen to break new ground in institutional coordination and division of labor, showcasing the achievements of cross-boundary integration, and accumulating replicable experience for long-term regional synergy under national strategies.

The deepening integration between the two cities is anchored in top-tier national policy frameworks, with tangible results across hard infrastructure and soft institutional alignment. Guided by the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, the two cities have built a three-dimensional cross-boundary transport network, forming part of the “railway-connected Greater Bay Area” blueprint endorsed by the National Development and Reform Commission.

Innovation fuels growth

Sci-tech and financial collaboration constitute the core engine of joint development. The Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone has gathered over 200 high-end research projects and more than 15,000 researchers, fostering a mature industrial loop of “Hong Kong R&D + Shenzhen industrialization + joint capital empowerment”.

In finance, the Shenzhen-Hong Kong Stock Connect recorded total turnover exceeding 150 trillion yuan ($22 trillion) by May, complemented by Bond Connect and Cross-boundary Wealth Management Connect to facilitate two-way capital flows. Hong Kong’s dedicated task force for mainland enterprises expanding overseas had supported more than 310 firms to set up or expand operations in Hong Kong as of early May, channeling HK$26 billion in direct investment in the first year. Such complementary strengths embody the core positioning of Hong Kong as a vital superconnector linking the Chinese mainland and global markets.

The dual hosting of landmark APEC events in Shenzhen and Hong Kong is a strategic national arrangement, highlighting the unique institutional advantage of “one country, two systems” and unlocking untapped potential for coordinated governance across two tariff zones, legal frameworks and currencies. Separated by a short high-speed rail ride, the two cities can form a seamless event ecosystem: Hong Kong hosts high-level financial dialogues and international investor roundtables, while Shenzhen organizes industrial field visits and tech innovation exhibitions.

Nevertheless, institutional friction remains the primary bottleneck restricting deeper integration, including incomplete mutual recognition of professional qualifications, limited cross-boundary data circulation channels, fragmented cross-regional coordination mechanisms, and inconsistent financial regulatory standards. To fully seize the APEC opportunity and translate event momentum into long-term institutional dividends, targeted policy proposals aligned with the 14th Five-Year Plan (2021-25) and 15th Five-Year Plan (2026-30) are put forward in four key dimensions:

First, establish a permanent Shenzhen-Hong Kong APEC coordination task force to integrate event resources into regular cross-boundary cooperation mechanisms. Led by the Shenzhen municipal and Hong Kong Special Administrative Region governments, the team will jointly design parallel side events: Hong Kong can host an APEC sustainable finance forum and cross-boundary legal roundtable showcasing its international arbitration and green finance expertise; Shenzhen can hold a technology transfer meeting to display Hetao’s joint innovation outcomes. All activity outcomes will be incorporated into the working agenda of the Shenzhen-Hong Kong Financial Cooperation Committee and Hetao joint management body, avoiding one-off event gains without a sustained follow-up.

Second, expand institutional pilot programs centered on Qianhai and Hetao to advance comprehensive rule alignment. Ahead of APEC, accelerate the rollout of the Qianhai 2026 Action Plan for deep integration: scale up the “Hong Kong capital, Hong Kong law, Hong Kong arbitration” model, launch cross-boundary mediator qualification mutual recognition, and broaden the “Shenzhen-Hong Kong Private Equity Connect” program.

Third, build a whole-industry-chain collaborative layout linking Hong Kong’s Northern Metropolis, Hetao and Shenzhen’s innovation clusters. Form a complete innovation chain of “basic research in Hong Kong’s New Territories tech hubs, applied research in Hetao, industrial transformation in Shenzhen”.

Fourth, upgrade cross-boundary public service connectivity to facilitate free flow of people. Expand the “frequent traveler” customs program at all boundary control points, realize full mutual recognition of professional certificates covering finance, law, medical care and architecture, and build bilingual integrated municipal service platforms.

The parallel hosting of core APEC meetings in Shenzhen and Hong Kong is a rare test bed for breaking institutional barriers. By leveraging this landmark platform, the two cities can combine Hong Kong’s internationalized legal, financial and networking strengths with Shenzhen’s industrial, technological and policy innovation advantages, turning institutional disparities into complementary strengths.

The author is a member of the Election Committee of Hong Kong, the Chinese Association of Hong Kong and Macao Studies, and a doctor of juridical science.

The views do not necessarily reflect those of China Daily.