Hong Kong and Shanghai to cooperate on captive insurance

Hong Kong and Shanghai have agreed to cooperate in the development of captive insurance and insurance linked securities, according to a statement from the Chinese government. 

The agreement was part of a broader pact between the two cities on enhancing cooperation to boost the financial strength of both cities.

On insurance, both sides will facilitate exchange and cooperation in the industry on such development issues as risk management of Belt and Road projects, captive insurance and insurance-linked securities, the statemen said. 

"During a meeting in Hong Kong, representatives of the governments, financial regulators and exchanges of the two cities discussed issues of mutual concern, including the latest developments of financial services in the China (Shanghai) Pilot Free Trade Zone, cooperation in respect of cross-boundary Renminbi business, securities, futures, insurance, financial technology (fintech) and green finance as well as enhancing talent exchange," it added. 

"Both sides agreed to work on the continuous enhancement of the mutual market access programs, such as Shanghai-Hong Kong Stock Connect, Bond Connect and Swap Connect, collaborate closely to implement the newly announced measures and explore further deepening of cooperation between the securities markets of the two places.

"They agreed to strengthen cooperation on product development, services and innovation relating to green finance and enhance exchange and cooperation among fintech enterprises of the two places."

The Financial Services and the Treasury Bureau of the HKSAR government and the Shanghai office for advancing international financial centre development also agreed to take the lead in holding regular meetings to enhance exchanges and financial cooperation between the two cities, it said.  

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