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Under the "One Country, Two Systems" principle, Hong Kong keeps on enjoying the independent judiciary, political stability, low and simple tax regime, free market principles and clean business environment that underpin its success as an international business city, the Director of Hong Kong Economic and Trade Office (HKETO) in Singapore, Mr Fong Ngai, said at a luncheon in Bangkok, Thailand, today (August 17).
Delivering a presentation entitled "Hong Kong - Asia's business capital; A strategic location to seize opportunities" at the Presidents' Luncheon of the Joint Foreign Chambers of Commerce Thailand, Mr Fong told the presidents of some 30 foreign chambers of commerce there that Hong Kong's commitment to maintaining open markets and free trade is best reflected by its continued high scores in various business rankings by world leading consultancies, including the Heritage Foundation and the Fraser Institute/Economic Freedom Network.
Mr Fong said, "Being a gateway to Mainland China, Hong Kong presents vast opportunities to businesses all over the world. China's National 12th Five-Year Plan underscores Hong Kong's role in, and opportunities arising from, China's development."
In the 12th Five-Year Plan, Hong Kong is positioned as an offshore centre for business using the Mainland currency, the Renminbi (RMB); as China's global financial centre; as an international asset management centre; as an international centre for trade; and as an international shipping centre, playing a significant bridging role.
Mr Fong highlighted that Hong Kong had become the offshore centre for RMB banking, RMB trade settlement and the issuance of RMB bonds. RMB trade settlement conducted through banks in Hong Kong in the first four months of 2011 amounted to RMB445 billion. RMB deposits in Hong Kong increased to RMB510 billion as of end April this year. Hong Kong is the largest offshore RMB bond market.
"Hong Kong's strategic location has made it the gateway to Mainland China for business for more than 150 years. Important infrastructural catalysts are in the pipeline for further economic integration," said Mr Fong, referring to the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge, which will be completed in 2015 to 2016 respectively, as well as a consultation on a third runway at the Hong Kong International Airport to be completed in September this year.
On Hong Kong as the springboard for Chinese companies, Mr Fong pointed out that over 3 000 internationally minded Mainland enterprises are based in Hong Kong, which has become the largest international capital-raising centre for Mainland enterprises, with over US$282 billion raised since 1993.
Mr Fong appealed to the luncheon participants to seize the business opportunities offered by Hong Kong for doing business in China. He particularly introduced to them the nationality-neutral Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), a free-trade agreement (FTA) covering trade in goods, services and investment facilitation. He said, "CEPA remains the most preferential among all Mainland FTAs. It is a win-win agreement, bringing new business opportunities to the Mainland, Hong Kong and all foreign investors."
He added, "To leverage on the CEPA benefits, foreign investors are encouraged to establish their businesses in Hong Kong, to acquire or to join forces with enterprises in Hong Kong to make the full use of the CEPA opportunities in entering the Mainland market".
Apart from CEPA, Hong Kong has signed FTAs with other important trading partners and 29 agreements on avoidance of double taxation with other places, including Brunei, Indonesia, Thailand, Singapore and Vietnam, to pave the way for further economic co-operation.
Noting the growing trade relations between Hong Kong and ASEAN, and Thailand in particular, Mr Fong said the ASEAN region as a bloc had become Hong Kong's second largest trading partner, just after Mainland China, with Thailand its second largest trading partner among ASEAN countries with a trade volume of US$14 billion in 2010.
With the Double Taxation Agreement and Investment Promotion and Protection Agreement signed between Hong Kong and Thailand in 2005, Mr Fong reassured that the trade and economic ties between the two places would further develop and strengthen.
Ends/Wednesday, August 17, 2011
Issued at HKT 15:17
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