Financial officials from Hong Kong and mainland China met on Tuesday to discuss strengthening cross-border connect schemes, according to a statement from the State Administration of Foreign Exchange (SAFE).

The meeting between Hong Kong Monetary Authority (HKMA) chief executive Eddie Yue Wai-man and People’s Bank of China (PBOC) deputy governor Zhu Hexin, who is also SAFE administrator, touched on ways to bolster the city’s role as an international financial centre, the statement said. SAFE deputy administrator Xu Zhibin was also present during Yue’s visit.

While SAFE did not elaborate further on next steps, analysts said the talks likely covered boosting the bond markets, expanding the wealth connect scheme, enhancing Hong Kong’s role as a yuan trading hub, and aligning with the country’s new five-year plan.

“Hong Kong this year is for the first time starting to work on its own five-year plan, while Beijing has expressed support for the city’s new development plan to match over 3,000 projects on the mainland,” said Wilson Chan Fung-cheung, an adjunct professor at City University who was a banker for three decades. “It is thus vital to see HKMA officials have more meetings with mainland officials to discuss the way forward.”

Chan said that with China maintaining capital controls while Hong Kong remained a free market, the city played an important role in facilitating capital inflows and outflows for the country, which was why HKMA had to work closely with the PBOC and SAFE.

“Many mainland companies can use Hong Kong as a platform to expand overseas, while international investors who want to invest in mainland China can also use Hong Kong as a gateway,” Chan said.