Shenzhen, a Special Economic Zone in China, has been playing the leading role in institutional innovations in China. Hong Kong is an important international financial center, and Shenzhen is becoming the domestic financial center. At present, such favourable factors  as geographic proximity, infrastructure and policies are ready for deeper financial cooperation between the two places. According to the overall reform plan of China's financial industry, Qianhai, the Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, has been designated as a forerunner to build itself into “an experimental and exemplary zone of financial opening” and “the cross-border RMB business innovation zone”. So far Qianhai has done many explorations in these aspects. Such experience is very valuable for the overall reform of the financial sector in China.

 

Research areas of the Financial Innovation Research Center include:
* Internationalization of the RMB and offshore RMB market development;
* Pilot of capital account opening;
* Cross-border RMB business innovation;
* Investment and financing facilitation in FTA;

* Fusion of Shenzhen and Hong Kong financial markets;
* Internet financial innovation and risk control;
* Trends of China and Global financial industry innovation.

Currently, the Financial Innovation Research Center has completed its research on the Qianhai Cross-border Financial Index and the integration of Shenzhen-Hong Kong financial markets. Currently the Center is promoting research on macroeconomic policy analysis, financial literacy and risk management, and private financial institutions. Next, the Center will focus on an assessment of the financial policies implemented in Qianhai, as well as research on the promotion of free flow and market-based allocation of  financial elements between Shenzhen and Hong Kong.