The rise of Shanghai as the emerging financial centre has caused concerns about Hong Kong’s future. The two economies clearly possess their own comparative advantages and weaknesses, with their own unique economic structures. And as Hong Kong’s economy becomes more and more integrated with the mainland, it is argued in this paper that the two cities’ development paths will be more decided by governments at different levels with their different hinterlands to serve and niche markets to aim, their relationship will likely evolve into a more complementary instead of rivalry in nature.