Li Minqiao, a member of the Shanghai Municipal Committee of the Chinese People's Political Consultative Conference, has underlined the potential for Shanghai and Hong Kong Special Administrative Region to collaborate in expanding cross-border renminbi financing channels by leveraging the advantages offered by Shanghai's Lin-gang Special Area.

Li, who is also a co-CEO of the Bank of East Asia, made the remarks during an interview with ThePaper.cn during this year's Shanghai "Two Sessions".

Li highlighted Shanghai's status as a financial center with high liquidity, capable of providing renminbi funds to foreign enterprises, while Hong Kong boasts international advantages and regulatory experience in connecting with national financial markets, making it suitable for facilitating domestic renminbi funding for multinational corporations.

In alignment with the Government Work Report delivered by Shanghai Mayor Gong Zheng at this year's session of the Shanghai Municipal People's Congress, which emphasizes the importance of accelerating the development of the Lin-gang Special Area, Li said he sees an opportunity for Shanghai to leverage the free trade zone as a catalyst for expanding the functionality of free trade accounts promptly.

"By harnessing the policy advantages and market demands of the free trade zone, foreign financial institutions can actively engage in financial innovation services, such as offshore renminbi transactions and standardized international collaborations, to provide diverse financial products and services to enterprises," Li said.