National Committee of the Chinese People's Political Consultative Conference member Wang Dongsheng: Suggests allowing Shenzhen-Hong Kong investors to participate in new stock listings and trading in both regions to realize the "New Stock Connect" in the Greater Bay Area

21st Century Business Herald Reporter Yu Jixin

In the first year of the “14th Five-Year Plan” period, Wang Dongsheng, member of the National Committee of the Chinese People’s Political Consultative Conference, Vice Chairman of the Agriculture and Rural Committee, and Chairman of HSBC Hong Kong and Shanghai Banking Corporation Limited, mainly focuses on further promoting deep connectivity within the Greater Bay Area, financial support for agricultural development, and other topics. He also offers suggestions on leveraging Hong Kong’s advantages to serve the overall national development.

Suggestion to Launch a “New Stock Connect” in the Greater Bay Area

Mainland companies listing in Hong Kong remain very popular, helping Hong Kong once again become the world’s largest stock listing market. Connectivity between the two regions continues to deepen. Last year, policies were introduced allowing Greater Bay Area companies listed in Guangdong, Hong Kong, and Macau to list on the Shenzhen Stock Exchange according to regulations, achieving two-way connectivity for listing entities.

Wang Dongsheng believes that further allowing investors from Shenzhen and Hong Kong to participate simultaneously in new stock listings in both regions—creating a more comprehensive “New Stock Connect”—would help deepen financial cooperation between Shenzhen and Hong Kong, enhance connectivity of financial markets in the Greater Bay Area, improve the inclusiveness and adaptability of the domestic capital market system, and promote the internationalization of the Renminbi.

Wang Dongsheng’s specific suggestions are as follows:

First, Investment Targets. In the pilot phase, A+H listed companies could be included in the “New Stock Connect,” allowing mainland investors to purchase shares newly issued by A-share companies on the Hong Kong Stock Exchange, and allowing Hong Kong and overseas investors to purchase shares newly issued by Hong Kong-listed companies on the Shenzhen Stock Exchange. As the pilot matures, the scope could be expanded to include companies with a market value exceeding 5 billion RMB or HKD. This requirement aligns with the Shenzhen-Hong Kong Stock Connect, facilitating continued trading after subscription for investors from both regions.

Second, Qualified Investors. Continuing the Shenzhen-Hong Kong Stock Connect mechanism, Hong Kong and overseas investors participating in domestic IPOs must meet the qualification requirements of the Hong Kong Stock Exchange, while mainland investors participating in Hong Kong stock IPOs must meet the suitability management requirements of the Shenzhen-Hong Kong Stock Connect.

Third, Capital Arrangements and Shareholding Ratios. Investor funds should be managed in a closed-loop manner. For applicable currencies, Shenzhen Stock Exchange investors and listed entities can use RMB, while Hong Kong Stock Exchange investors and listed entities can use HKD or offshore RMB. Since new stock issuance is not daily trading, there is no need to set daily trading limits. Shareholding ratios can follow the requirements of the “Provisions on the Interconnection Mechanism between Mainland and Hong Kong Stock Markets.”

Enhancing Financial Support for Climate-Resilient Agricultural Projects

The “National Climate Change Adaptation Strategy 2035” clearly states the need to systematically enhance climate adaptation capabilities in key areas such as agriculture. The ongoing development of meteorological and green finance systems provides a solid institutional foundation for agricultural climate adaptation.

However, in practice, there are gaps in data, standards, and their integration with financial risk management systems. There is room for improvement in risk identification and funding continuity for agricultural climate adaptation projects. Accordingly, Wang Dongsheng offers the following specific suggestions:

First, open channels for data and financial risk model application based on existing “Meteorology+” policies. Currently, meteorological departments have established disaster monitoring systems, historical climate databases, and agricultural meteorological service networks. However, in practice, climate risk variables are difficult to incorporate into default probability calculations and risk classification systems. It is recommended to develop standardized climate risk data interfaces and indicator descriptions for financial institutions, constructing core indicators such as regional extreme weather frequency, disaster exposure levels, historical yield reductions, and coverage of agricultural weather warnings. These should clarify their relationship with income fluctuations and default risks. Additionally, standardizing data formats, transmission protocols, and indicator definitions will enable financial institutions to utilize relevant data in credit review and post-loan management, shifting from post-claim support to pre-emptive risk management.

Second, improve the agricultural climate adaptation indicator system within the existing green finance standards framework. China’s green finance standards are gradually improving, with many standards and catalogs including agricultural ecological content. However, these entries have limited expression of risk mitigation effects related to agricultural climate adaptation. It is recommended to enhance application guidelines for projects related to climate adaptation—especially in agriculture—by reflecting risk improvements through indicators such as yield volatility changes, damage reduction in disaster years, and income stability. At the application level, strengthen the logical connection between ecosystem function enhancement and disaster resistance, aligning ecological value with financial risk management.

Third, establish a phased support and market-oriented continuation mechanism based on risk improvement. Agricultural climate adaptation projects are inherently phased. It is suggested to establish a mechanism where risk improvements are verifiable and support is gradually withdrawn. Early-stage projects can be supported through policy guarantees, risk-sharing arrangements, or guiding credit tools, with continuous data tracking on extreme weather impacts, yield changes, and losses. When risk structures stabilize and become quantifiable, gradually phase out policy support, and guide long-term capital such as insurance funds and pension funds to participate in operations and refinancing, transitioning from policy-driven support to market-based, long-term capital continuation. Clear phase divisions, data verification, and exit pathways will help develop a sustainable, replicable, and scalable market model for agricultural climate adaptation finance.

(Edited by: Wen Jing)