Shanghai free trade zone no game-changer for Hong Kong, for now
HONG KONG (REUTERS) - The launch of a Shanghai free trade zone heralds a new chapter in China's drive to promote the yuan currency but it is unlikely to pose a competitive threat to Hong Kong any time soon and could instead provide more opportunities in the former British colony.
Underpinned by its strong rule of law and freedoms under the "one country, two systems" formula since it was handed over to China 16 years ago, Hong Kong is a long-time beneficiary of preferential economic policies.
It is China's designated global offshore yuan centre and is seen as a gateway to the world's second-largest economy.
While the launch of the 29 sq km Shanghai zone has stoked debate from tycoons to taxi drivers as to whether this could be a turning point for the fortunes of the former British territory, market watchers expect little impact for now.