One of the traditional pastimes in Hong Kong is worrying out loud about whether the Chinese territory is losing ground to Singapore as a global financial centre.

But recently, Singapore has been shunted out of the conversation in favour of Shanghai, mainland China’s financial capital. Everyone from Li Ka-shing, Asia’s richest man, to diners at local restaurants, are asking if the newly unveiled Shanghai free-trade zone will eventually eat Hong Kong’s lunch.

Whether the Shanghai project will become the capital markets equivalent of Shenzhen – the special zone created by Deng Xiaoping to launch economic reforms three decades ago – is impossible to tell, as details remain vague. Even John Tsang, Hong Kong’s financial secretary, says he is unclear.