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Hong Kong should take advantage of its geographical position and enhance its role as a bridge between the Mainland and the world in order to maximise its strengths and edge, the Acting Chief Executive, Mr Rafael Hui, said this morning (March 6).
Mr Hui was speaking at an Economic Symposium analysing how best Hong Kong should utilise its unique geographical proximity in developing regional co-operation with the Mainland.
Mr Hui pointed out three ways Hong Kong could strengthen its connections with the Mainland and engage itself globally. First was to encourage Mainland enterprises to use Hong Kong as their base to explore international markets; second, to provide various services to support regional commercial co-operation; and third, to help Mainland enterprises on venture capital by making use of Hong Kong's position as an international financial centre.
Mr Hui said one of the key priorities of the Government's work was to attract overseas and mainland enterprises to invest in Hong Kong. "With our world-class international business environment and other supporting facilities, Hong Kong has become a popular investment destination for various Mainland enterprises," he said.
"In recent years, Hong Kong has been a springboard for Mainland enterprises to expand their business into the global market. To further promote economic integration between Hong Kong and the Mainland, we must introduce Hong Kong's diversified services into the Mainland."
Mr Hui also said the Government had been promoting Hong Kong's service industry on the Mainland through the Closer Economic Partnership Arrangement (CEPA). The Mainland had given Hong Kong preferential access to the Mainland market to 27 major service industries such as banking, logistics, legal service, accounting and telecommunications. The Government also continued to encourage professionals from both sides to foster the reciprocal recognition of professional qualifications.
He pointed out that under CEPA, it would be easier for Hong Kong enterprises to enter the Mainland market. "The cost of production is relatively high in Hong Kong, which lowers our competitiveness on prices. To stand out, we must increase our competitiveness on quality. We must develop value-added products and services with innovative technology, high-value added content and substantial intellectual property input," Mr Hui said. In this aspect, the Government would continue to nurture scientific and design talent.
Commenting on how Hong Kong was making use of its international financial status to help Mainland corporation finance, Mr Hui said Hong Kong enjoyed a flexible and stable financial system, as well as a regulation system of international standard. Financing service was one of the strengths that could help facilitate the growth of the Mainland economy. Currently, about 70 of the 100 largest banks in the world have set up offices in Hong Kong.
Mr Hui said that up to the end of 2005, 335 Mainland corporations had been listed in Hong Kong and had raised more than $1,000 billion since 1993. He expected that more and more capital from the Mainland would be transferred overseas for investment as the Mainland allowed its money - including insurance companies and China National Social Security Fund - to invest overseas. More opportunities were anticipated for Hong Kong to co-operate with the Mainland with financial services.
Mr Hui emphasised that Hong Kong should not forget its competitive edge to engage the world if it wanted to be the bridge between the Mainland and the world. "It is essential to actively consolidate Hong Kong's role as an international commerce, information, finance and services centre when advancing trade co-operation with the Mainland." He said that in order to be that bridge, the SAR Government would continue to strengthen Hong Kong's position as the freest economy for business and the best market for the Mainland and overseas investors.
Ends/Monday, March 6, 2006
Issued at HKT 19:30
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