China's campaign against illegal cross-border securities trading could reinforce Hong Kong's position as a financial hub, economists said at the World Economic Forum's 'Summer Davos' meeting, reports Hong Kong's South China Morning Post.

Diana Choyleva, founder and chief economist at Enodo Economics, told delegates that Beijing's measures were designed to curb unlawful capital outflows while expanding official connect schemes that channel investment through Hong Kong.

The China Securities Regulatory Commission last month penalized three brokerages - Futu Securities, Tiger Brokers, and Long Bridge - for illegally giving mainland investors access to overseas markets. The move raised concerns about tighter capital controls and Hong Kong's future as a wealth center.

Ms. Choyleva stated that the crackdown forms part of a multi-year effort to restrict illicit flows while simultaneously widening official channels. She argued that Hong Kong's role is shifting from a conduit for foreign investment into China to a hub where domestic wealth is intermediated globally 'on China's own terms.'