Beijing unveils detailed reform plan to make Shenzhen model city for China and the world (SCMP, 3 min read)
China has some grand plans for the Shenzhen area, and they shine a light on their long-term strategy towards Hong Kong. The plan is to transform the area into a socialist example of global leadership and innovation. It’s part of Beijing’s plans to turn Greater Bay Areainto a mega-hub for growth - it currently accounts for 12% of the country’s GDP into a mega-hub for growth. The plans were released amid the rising tensions with Hong Kong this summer; meanwhile, Shenzhen’s economy surpassed Hong Kong’s for the first time in 2018, reaching HK$2.87 trillion compared to Hong Kong’s HK$2.85 trillion in the same year.
Why does this matter? In February, Beijing stated that it plans to integrate eleven regions within the Greater Bay Area, turning them into a large powerhouse. But after this summer’s unrest they might decide to reduce Hong Kong’s significance in the scheme.
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)
Sign up to the Macro Hive newsletter here: