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Hong Kong and Fujian Province jointly organised a seminar in Philadelphia today (October 18, Philadelphia time) to encourage more investment by US companies in Hong Kong and Fujian. About 100 senior business executives, who were enthusiastic about potential business opportunities in Hong Kong and Fujian, participated in the seminar.
The seminar, themed "Hong Kong and Fujian: Partners for Your China Strategy", was the second joint initiative by the two places to promote investment opportunities in the Pan-Pearl River Delta (Pan-PRD). It was organised by Invest Hong Kong and the Fujian Department of Foreign Trade and Economic Co-operation (Fujian DOFTEC). The Hong Kong Economic and Trade Office in New York co-organised the event.
The half-day seminar began with welcome remarks by the Commercial Consul of Consulate General of the People's Republic of China in New York, Mr Yuan Zhan-ling and the Director of Hong Kong Economic and Trade Office in New York, Miss Monica Chen.
The Director-General of Investment Promotion at Invest Hong Kong, Mr Mike Rowse, and the Director-General of Fujian DOFTEC, Mr Yang Biao spoke at the seminar and encouraged US companies to explore the potential in the Pan-PRD region by investing in both Hong Kong and Fujian.
In his keynote speech, Mr Rowse highlighted the distinct advantages of Hong Kong as a strategic gateway to enter the Pan-PRD region. "Hong Kong has the ingredients for multinational corporations to achieve success," he said. "We are the preferred business location for foreign companies to manage their regional operations. Our city is home to 3,845 regional headquarters and offices operated by foreign and Mainland companies nearly 900 of which were from the US.
"The US has been one of the major sources of foreign direct investment (FDI) in Hong Kong. It ranked the fifth largest source of FDI in Hong Kong, with a total stock of FDI amounting to US$31.2 billion as at the end of 2004. US enterprises form what is the largest international business community in Hong Kong, with approximately 1,200 firms in a wide range of sectors. While existing US companies continue to expand in Hong Kong, we welcome more companies establish a base in our city to invest in the Mainland, particularly in Fujian. They can therefore capitalise on the complementary strengths of the two places in order to tap the huge Pan-PRD or even the Mainland market."
"Moreover, international companies based in Hong Kong may take advantage of the benefits offered by the Closer Economic Partnership Arrangement (CEPA), a free trade agreement between Hong Kong and the Mainland. Through CEPA, US companies may enter the Mainland market by setting up in Hong Kong, forming a joint venture with Hong Kong company or even acquiring a company in our city. More than 25% of the companies that we help cite CEPA as at least one of the reasons they have invested in Hong Kong," Mr Rowse said.
Mr Yang, of Fujian DOFTEC, discussed the appeal of the province to investors. He said that Fujian, situated on the coast of Southeast China, was one of the earliest provinces opened up to foreign investment, as well as one of the regions with the most economic potential in China.
"Fujian's three economic drivers - electronic and information technology, machinery and equipment and petrochemical industries - are among the leading sectors nationally. If US enterprises set up regional headquarters in Hong Kong and locate their manufacturing bases or logistics centres in Fujian, they can then utilise the advantages of both places and get the most from their investment in the region," Mr Yang said.
The Pan-PRD, which includes nine Mainland provinces, Hong Kong and Macau, is recognised as China¡¯s most affluent region. In 2004, one-third of China¡¯s GDP was produced in Hong Kong, Fujian and the surrounding Pan-PRD region. The region has a total population of 450 million, representing nearly 35% of China¡¯s total. Through the Pan-PRD co-operation, foreign investors have found it attractive to conduct their service activities in Hong Kong, while placing their manufacturing facilities in the Pan-PRD.
During the seminar, President of Du Point China Limited, Mr Joseph Wong, shared his company¡¯s experience in investing in the Pan-PRD region.
In addition, Partner and Head of Allen & Overy's China Group from New York, Mr Mitchell Silk, gave practical advice on doing business in Hong Kong and Mainland China.
The seminar was followed by a luncheon, which allowed participants to network and share experiences with each other in a more relaxed setting. To conclude the investment promotion programme, a consultation session was arranged for seminar participants to seek advice and information from representatives of Invest Hong Kong and Fujian DOFTEC.
Ends/Thursday, October 19, 2006
Issued at HKT 11:17
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