The Guangdong Free Trade Zone, modeled on Shanghai's pilot FTZ, would enhance regulatory transparency and offer easier renminbi lending to international investors.

When established, enterprises operating in the Guangdong FTZ can borrow renminbi directly from Hong Kong banks, just like what they are doing now in Qianhai, said Yeung, adding that the Guangdong FTZ is expected to be more open and closely connected with the SAR.

According to the scheme submitted to the State Council last December, Guangdong's FTZ will consist of three new areas - Shenzhen's Qianhai, Zhuhai's Hengqin and Guangzhou's Nansha, plus the Baiyun Airport Comprehensive Bonded Zone, covering a total area of about 931 square kilometers.

With the overall aim of strengthening links with Hong Kong and Macao, the three new areas will have their own specialties.

While the Qianhai Cooperation Zone will continue to focus on the development of the high-end services industry, Hengqin's development will mainly cover tourism, commercial services, high-tech and cultural and creative industries. By comparison, the development scale of Nansha is larger, including port facilities and dedicated manufacturing districts.

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By Sophie He in Hong Kong and Zhou Mo in Shenzhen(HK Edition)