mainland, the further opening up of shanghai, such as the development of its free trade zone, will lead to closer and more extensive business, trade and financial links between the two cities, meaning more business opportunities. in 2000, there were 23 flights a day between hong kong and shanghai. in 2013, this had increased to 75, clearly demonstrating that the continuous growth of shanghai will result in more business exchanges with hong kong and creating a win - win situation. 9. indeed, the launch of the shanghai - hong kong stock connect on november 17 resonates with my assertions here in several ways. last week, vice - premier ma kai told the visiting delegation of the hong kong association of banks that the scheme was not only a bis central bankers ’ speeches milestone for financial co - operation between hong kong and shanghai, but also a strategic move towards the mainland ’ s capital account convertibility and the opening up of its capital market. furthermore, the shanghai - hong kong stock connect adds another important channel for the circulation of renminbi between onshore and offshore markets. it is also a strong vote of confidence in hong kong ’ s development as an international financial centre, reaffirming our unique role as the offshore testing ground for the mainland ’ s financial liberalisation. zero - sum vs positive - sum 10. there are also those who believe that to maintain hong kong ’ s competitive edge, we must be the only conduit for foreign capital going into and out of the mainland. it means a “ single access ” model, with hong kong as the only link and conduit between the onshore and offshore markets. the rationale for hong kong to continue to monopolise the access to the onshore market is understandable. it also serves practical purposes at the initial stage of the renminbi ’ s internationalisation. but as the renminbi internationalisation progresses, this model is not sustainable in the long run. the aim of opening up the capital account and internationalising the renminbi is to foster general acceptance of renminbi in global trade and investment and as a reserve currency. to promote the extensive use of renminbi by corporations and investors around the world, renminbi business must flourish in different parts of the world. the development of the offshore renminbi market must shift from a “ single access ” model to a “ multiple accesses ” model. we pride ourselves as the world ’ s most important offshore renminbi centre, still far ahead of

other centres in terms of the size of the liquidity pool and various financial intermediation activities. but there is no time for complacency. our task is to consolidate hong kong ’ s unique advantages and leverage our first - mover position by incessantly upgrading our renminbi platform, making it the ideal choice for companies and financial institutions, on the mainland and around the world alike, to conduct various types of offshore renminbi business. our challenge, therefore, is to evolve successfully in the face of this shift and it is a philosophy that the hkma has been actively pursuing in the past few years – exploring new policy headroom, improving our financial infrastructure, promoting hong kong ’ s offshore renminbi business in overseas markets in collaboration with the financial industry, and co - operating with other places, such as london, paris, australia, malaysia and thailand in developing renminbi business. a competition of soft power among international financial centres 11. as i have emphasised on many occasions, the competition among international financial centres is essentially a battle of soft power. that is not to say hard power is not important. quite the opposite, the building of hard infrastructure such as airports, transportation system, telecommunications, and efficient offices, is a prerequisite for entering the race. yet it can only go so far. funds, especially at the wholesale level, tend to flow to and aggregate in the more efficient and safe financial centres. therefore, the race ultimately depends on soft power, which is made up of a wide range of qualities and strengths that are difficult to quantify. they include, the most important of all, the rule of law, protection of property rights and intellectual property, the taxation regime, the soundness of financial institutions, the robustness of supervisory frameworks, the competency and integrity of professionals, such as financial practitioners, accountants and lawyers, the free flow of information, the free and convenient movement of people, and a favourable business environment. hong kong ’ s competitive edge in hard power and soft power has been a hardearned success made possible through the cumulative effort of successive generations. but i think the most crucial factor lies in the “ can - do ” spirit of the people of hong kong, a drive to always look for a solution, agilely and tirelessly, with no fear of obstacles or competition. our economic transformation and development in the 1960s and 1970s, migrating from entrepot trade to light industry and then finance, is a story