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The Hong Kong Special Administrative Region Government's Principal Hong Kong Economic and Trade Representative in Japan, Mrs Jennie Chok, today (June 7, Osaka time) updated an audience of some 200 people from political, business and media circles of Osaka on Hong Kong's economy and the expanding scope of business opportunities for foreign investors that are available in Hong Kong.
Mrs Chok was speaking at the luncheon seminar on "Hong Kong - New Opportunities; New Attractions" organised by the Hong Kong Economic and Trade Office in Tokyo, in conjunction with the Hong Kong Trade Development Council and Hong Kong Tourism Board, in Osaka. Osaka Prefecture's Vice-Governor Mr Kazuo Miwa gave welcoming and introductory remarks.
Mrs Chok told the Osaka seminar that after more than five years of hardship and deflation that ended in mid-2004, Hong Kong now enjoyed sustained and broad-based recovery, with GDP growing by 8.6% in 2004 and 7.3% in 2005.
"Foreign investment has been particularly strong, with inflow of FDI from Japan alone amounting to гд196.3 billion in 2005 - an impressive 370% increase over 2004.
"The number of companies that have set up regional headquarters or regional offices in Hong Kong also reached an all-time high in 2005," Mrs Chok said.
The rule of law, free flow of capital and information, respect for intellectual property rights, a simple and low tax system and clean governance were listed as fundamental attributes that had made Hong Kong an attractive place for foreign investors.
In addition, the increasing economic integration with Mainland China and its spectacular economic growth had opened up immense business opportunities for foreign investors.
"The Closer Economic Partnership Arrangement (CEPA) is one of the most important initiatives that will bring Hong Kong's economic and trade relationship with the Mainland to new heights," Mrs Chok said.
Under CEPA, all products of Hong Kong origin now enjoy tariff-free access to the Mainland Chinese market; and Hong Kong service suppliers in 27 service areas, including retail/distribution, logistics, construction, and audio-visual, etc., enjoy preferential treatment in the Mainland market.
Mrs Chok stressed that foreign companies setting up production or based in Hong Kong could also benefit from CEPA.
On financial services, she said that Hong Kong, both as the capital market gateway to the Mainland and the premier capital formation centre for Mainland enterprises, was offering yet more opportunities to its investors.
Hong Kong had introduced a number of measures to enhance its attraction as an international financial centre. These included the abolition of the estate duty, exemption of offshore funds from profits tax, and the planned reduction of the levy on trading in securities, futures and options contracts by 20% this year.
Mrs Chok said the horizon of business opportunities in Hong Kong was still expanding, as Mainland China had emerged as one of the fastest growing consumer markets in the world and a huge source of tourism for Hong Kong.
"With the staggering flow of Mainland Chinese and international tourists and business people into the city, Hong Kong is now not just a market of seven million Hong Kong people, but one that reaches more than 20 million consumers every year," she said.
Mrs Chok also highlighted the Pan Pearl River Delta Regional Co-operation initiative, which aimed to bring together and break down provincial and municipal trade barriers among nine provinces of southern China and the two special Administrative Regions of Hong Kong and Macau, with a total population of 460 million covering a vast region of southern China.
At the seminar, Director, Japan of Hong Kong Trade Development Council, Ms Shigemi Furuta, and Regional Director, North Asia of the Hong Kong Tourism Board, Mr Ken Kano, also gave detailed presentations on specific partnership opportunities with particular reference to Japanese businesses, and the latest tourist attractions in Hong Kong, including the Hong Kong Wetland Park, a world-class conservation, education and eco-tourism facility, and the Skyrail system "Ngong Ping 360" on Lantau Island.
Ends/Wednesday, June 7, 2006
Issued at HKT 15:37
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