Unlike the world's three major bay areas, where the service industry accounts for more than 80 percent of regional GDP, the tertiary sector contributes about 55 percent to the economy of the Guangdong-Hong Kong-Macau Greater Bay Area.

Hong Kong, where financial services are one of the twin economic pillars, has all the elements to cement its role in the bay area, according to a report published by ICBC International Holdings.

However, the city's economy shows sign of slowing momentum, with the manufacturing sector almost withering, and other parts of its service sector grappling with mainland competition, despite the financial services industry outshining its regional rivals, ICBC International said.

With the market betting big on Hong Kong gaining traction from the proposed Greater Bay Area, the researchers believe the point is to focus on the city's unique advantages and consolidate its position in the region.

"The city remains on track to sharpen its edge as the regional financial hub. This is where Hong Kong can expect to make a big difference for the bay area plan," the ICBC report said.

Wu, of Asia Financial Risk, said Shenzhen, the fishing village-turned-megacity that is the poster child of China's "new economy" and home to a host of tech giants such as Tencent, Huawei and ZTE, is looking to consolidate its position as the bay area's center of innovation.

Banking on its size and relatively cheaper production factors, Guangzhou, the capital of Guangdong, is well positioned to develop its strengths, which include electronic manufacturing, automobiles and international trade, the report added.

Wu believes the concept of regional integration doesn't ignore the issue of regional competition. Instead, it aims to cut ineffective competition and allow resources to be allocated in a more-efficient way.

That would alleviate the burden on main cities such as Shenzhen, whose excessive economic density and red-hot property market have become drags on its development.

Integration would also look to balance regional economic development by helping less-developed cities absorb the transfer of the manufacturing industry, which has long felt the pinch from surging labor and production costs and is seeking a cheaper manufacturing base, the report said.

Fielding Chen Shiyuan, Asia economist at Bloomberg Intelligence in Hong Kong, said the initiative is simply an extension of ongoing events: "At the very beginning, the Greater Bay Area plan is anything but a project on paper. It's just a reflection of what's been going on in the region for years.

"It may not take long for the region to obtain the crown of being the fourth world-renowned bay area because we are well on the way to seeing the results."