A recent survey conducted by the Hong Kong Japanese Chamber of Commerce & Industry indicates that 96 percent of its members are optimistic about their investment outlook and are satisfied with the business environment in Hong Kong.

In general, the Japanese businessmen hold that Hong Kong has gone out of the shadow of the Asian financial crisis and is stepping on the track of rapid economic expansion.

In year 2000, Hong Kong also obtained the highest score among the Japanese investors surveyed in the past three years. Some 31 percent of Japanese-funded firms in Hong Kong employed more staff, while some 41 percent of them are going to pour more money and employ more people in the coming three years.

Hiroshi Ito, president of the Hong Kong Japanese Chamber of Commerce & Industry, told reporters that Hong Kong is now home to some 2,000 Japanese-funded enterprises, with a total employees of 100,000.

Although the number of Japanese-funded firms in Hong Kong decreased compared to the years before 1997, but all Japanese- funded firms remaining in Hong Kong recorded considerable increase in profits in 2000 than the previous year.

He said the decrease of the Japanese investment is resulted wholly from Japan itself, nothing to do with the investment environment of Hong Kong at all.

On the contrary, he said, Hong Kong has drawn investment from many new Japanese firms, and those already here plan to further investment, especially in South China.

Statistics from the chamber show that Japanese banks in Hong Kong now top the foreign banks list in the city in terms of number and capital volume.

Since the second half of 1999, Japanese banks here have been more and more active in channeling funds to Hong Kong, said Ito, believing they will play a bigger role in the Hong Kong financial market after restructuring.

Ryoichi Kato, president of the Bank of Tokyo-Mitsubishi Limited, said four of the top 20 banks in Hong Kong are from Japan, ranking the third in the total volume of transactions following the Chinese mainland-funded and Hong Kong's local incorporated banks last year, but the first among all foreign banks.

Japanese banks in Hong Kong are mainly engaged in raising funds for Japanese-funded enterprises in Hong Kong and local companies as well, Kato said, adding that the main business of his bank is to raise funds for large scale regional projects for Japanese manufacturers and Japanese-funded small- and medium-sized enterprises in South China.

Talking about the business environment, Kato said Hong Kong has its unique advantages in many aspects, compared to other countries and regions in Asia.

Hong Kong's container terminal is the world's largest and the Hong Kong International Airport offers very convenient transportation, he said.

The wide use of English enabled Hong Kong to better communicate with the outside world, he said, adding that Hong Kong has also a legal system in tandem with international practice and well developed services and infrastructure, in addition to the lowest tariff.

Kato noted that Hong Kong will remain the most ideal place for running business, even if some foreign-funded enterprises may move northward to Guangdong province, and after the realization of direct postal, commercial and transport links between both sides of the Taiwan Straits and China's entry into the WTO.

He believed a large number of trade and investment activities between Chinese mainland and the rest of the world will be conducted through Hong Kong, and thus the regional headquarters of Japanese-funded firms will not leave Hong Kong in the near future.

(Xinhua 03/25/2001)