The sign reads "China (Shanghai) Pilot Free Trade Zone"
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Shanghai's free trade zone launched amid Hong Kong fears

30 September 2013 Last updated at 02:11 BST

Shanghai's much heralded new free trade zone was launched this weekend.

It's being touted as the most important economic reform since China began opening up in the 1980s.

Banks and businesses inside the pilot zone will enjoy greater freedom over trade, investment and currency exchange.

So could this be a key moment in China's economy? And why does Hong Kong fear this potential new competition?

Our correspondents from Shanghai and Hong Kong report.

Visit the BBC World News Asia Business Report website for more reports from the programme.