Hong Kong can serve as a platform to speed up the Mainland's reform process and create a win-win situation for both places, according to research from the Securities & Futures Commission.

The paper suggests Hong Kong does not simply provide a platform for Mainland companies seeking to raise funds. It also helps raise their corporate governance standards and international visibility.

As long as Hong Kong continues to strengthen its competitive advantages, it should maintain its position as the prime fund-raising centre for Mainland companies.

The latest initial public offerings of Mainland companies on the Hong Kong exchange underscore this view.

The paper said the implementation of the QDII - or qualified domestic institutional investors - scheme will enable these investors the benefits of adopting international standards and practices, and encourage them to demand these same standards and practices in the Mainland.

Over time, this will improve the further development of the Mainland markets in terms of the level of market sophistication and international best practices.