Hong Kong Acting Chief Executive, Rafael Hui, said on Monday Hong Kong should take advantage of its geographical position and enhance its role as a bridge between the Chinese mainland and the rest of the world. 

 

Speaking at an economic seminar on Monday, Hui said there were three ways Hong Kong could  strengthen its connections with the mainland and engage itself in a global way. .

 

This included encouraging Chinese mainland enterprises to use Hong Kong as their base to explore international markets, the provision of services to support regional commercial cooperation and assisting mainland enterprises find venture capital.

 

Hui said one of the key priorities of the government's work was to attract overseas and Chinese mainland enterprises to invest in Hong Kong.

 

"With our world-class international business environment and other support facilities Hong Kong has become a popular investment destination for various Chinese mainland enterprises," he said.

 

"In recent years Hong Kong has been a springboard for Chinese mainland enterprises to expand their business into the global market. To further promote economic integration between Hong Kong and the Chinese mainland we must introduce Hong Kong's diversified services to the Chinese mainland," he said.

 

The government has been promoting Hong Kong's service industry on the mainland through the Chinese mainland/Hong Kong Closer Economic Partnership Arrangement which makes it easier for Hong Kong enterprises to gain a foothold in the mainland market.

 

Hui said the government would continue to nurture talent in the scientific and design fields. "Production costs are relatively high in Hong Kong which lowers our competitiveness on price," he commented.

 

With a flexible and stable financial system as well as regulation procedures of international standard Hong Kong should use its international status to help mainland corporations find financing, Hui added.

 

At the end of 2005, 335 Chinese mainland corporations had been listed in Hong Kong and have raised more than 1 trillion HK dollars (US$1,290 billion) since 1993.

 

Hui expected that more and more capital from the Chinese mainland would be transferred overseas for investment as the Chinese mainland allowed its money -- including that of insurance companies and the China National Social Security Fund -- to invest overseas.

 

He said it was essential to consolidate Hong Kong's role as an international commerce, information, financial and services center when advancing trade cooperation with the Chinese mainland.

 

The government would continue to strengthen Hong Kong's position as sound economy for business and the best market for the Chinese mainland and overseas investors, he concluded.

 

(Xinhua News Agency March 7, 2006)