The Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centers was signed on Wednesday, when the highly anticipated two-day industry pageant Lujiazui Forum kicked off in Shanghai.

Made up of 38 detailed measures, the action plan aims to deepen cooperation between the two cities in terms of the connectivity of financial markets, innovation in cross-border financial services, green finance and technologies.

Specifically, Shanghai and Hong Kong will further optimize the bond connect program and swap connect mechanism. Better cross-border and offshore financial services should be provided to better serve companies' outbound reaches and address the country's Belt and Road Initiative. Efforts to build Shanghai and Hong Kong into global centers for renminbi asset allocation and risk management will be accelerated.

The two cities will also make joint efforts in cross-border clearance, which will be a new area of cooperation. In addition, a program that links gold products, trading and new application scenarios for cross-border RMB payment may be anticipated as Shanghai and Hong Kong work closer together. Financial institutions based in Shanghai may be able to expand their reinsurance businesses via Hong Kong, according to the new action plan.

Artificial intelligence and blockchain will be more widely used in asset management, insurance and settlement as the two cities deepen their cooperation. Both Shanghai and Hong Kong will aim to facilitate the development of technology companies with more supportive policies. Insurers will be encouraged to include new drugs and medical devices developed in both cities into their coverage range, promoting the development of the biomedicine industry.

With the new action plan, Hong Kong and Shanghai will seek differentiated development while empowering each other's development. This will help China elevate its power and influence in the global financial system, according to officials attending the signing ceremony on Wednesday.