Shenzhen and Hong Kong will form a joint task force on developing Qianhai, an area in Shenzhen's Nanshan District to be developed into a modern service industry base.

The measure was part of seven cooperation agreements signed between the two cities during a meeting between Shenzhen Acting Mayor Wang Rong and Hong Kong Chief Executive Donald Tsang in the SAR yesterday (Nov 30).

The task force will be led by Hong Kong's Constitutional and Mainland Affairs Bureau and a Shenzhen executive vice mayor.

They will garner expert advice on Qianhai's development mode, industry development, innovation policies, infrastructure, operation and management. They will also take into account Qianhai's development in their study of the Hong Kong-Shenzhen Western Express Line.

The two sides agreed Shenzhen will have a leading role in developing and managing Qianhai.

"The two sides will pursue the Central Government's support together", Chief Secretary Henry Tang said, adding Qianhai's development will benefit residents on both sides of the boundary.

Meanwhile, the Hong Kong Economic and Trade Office in Guangdong will soon establish a Shenzhen liaison unit to bolster communication and cooperation between the two governments.

Both sides agreed to pursue the extension of the cross-border yuan trade settlement pilot scheme, and introduce a Hong Kong stock portfolio exchange-traded fund in the Shenzhen Stock Exchange as early as possible.

Three nongovernment schools in Shenzhen will open classes for children of Hong Kong residents living there.

The University of Hong Kong will also cooperate with Shenzhen on innovation and technology, and establish a teaching hospital.