Financial Secretary Paul Chan Mo-po announced deepening connections between Hong Kong and Shanghai’s financial markets on June 18, 2025.
The collaboration aims to enhance financial innovation through shared standards and new technologies, with implications for cross-border payment systems and digital assets.
Key Points:
Paul Chan Mo-po announced the “Shanghai-Hong Kong International Financial Center Collaborative Development Action Plan” to enhance the financial interconnection between the regions. He emphasized joint efforts in financial standards and technology integration, particularly in blockchain and AI, during the Lujiazui Forum 2025.
The action plan includes 38 initiatives across six focus areas, targeting financial market connectivity and promoting digital finance innovation. This new framework aims to bolster cross-border clearing and digital RMB use, enhancing liquidity and institutional flows between Hong Kong and Shanghai.
“Through the Action Plan, Hong Kong and Shanghai will deepen financial market interconnection, boost standard-setting cooperation, and jointly promote new technologies like AI and blockchain in asset management, insurance, payments, and settlement.” – Paul Chan Mo-po
Market reactions highlight optimism over the initiative’s potential to boost financial innovation and cross-border transactions. Officials have reiterated their support, emphasizing the significant role of blockchain in driving the next phase of asset management and payment solutions.
Ethereum Sees Growth as Blockchain Gains Focus
Did you know? The Stock Connect mechanism between Hong Kong and Shanghai led to increased cross-border liquidity and safer access channels, providing a historical precedent for the expected financial innovation impacts of the current initiative.
Ethereum (ETH) is trading at $2,512.06 with a market cap of $303.26 billion, representing a 9.37% market dominance according to CoinMarketCap. Over 90 days, ETH has seen a 26.14% increase, though trading volume is down 14.83% at $21.76 billion in the past 24 hours.
Coincu research experts predict enhanced blockchain and AI integration will catalyze significant technological advancement within asset management sectors. Historical shifts, like past regulatory collaborations, suggest positive trends, bolstering regional digital finance ecosystems and adoption rates. The future looks promising for technology-backed financial solutions.
