Hong Kong under threat from new Chinese trade zone: Analysts
HONG KONG (AFP) - Hong Kong's status as a financial powerhouse is under threat, analysts say, after plans for China's first free-trade zone revealed a large-scale push to create a new international hub.
Draft proposals for the zone in Shanghai, seen by AFP, showed it goes beyond greater liberalisation of trade to take in investment and financial services - including free currency convertibility.
Chinese Premier Li Keqiang, who took office in March, is backing the FTZ, which his cabinet approved last month.
"They want an offshore harbour, basically like Hong Kong," said a financial industry executive briefed on the plans.