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The Financial Secretary, Mr Antony Leung, said today that Hong Kong would continue to be a conduit for trade, investment and communications between China and different partners around the world.

Speaking at a business breakfast (February 1 morning, New York time), hosted by the Hong Kong Association of New York at the start of his first visit to New York as Financial Secretary, Mr Leung said: "Hong Kong is the best place in the world for China to enter the world market, as well as the best place in China for the world to enter the China market."

He listed a number of positive spin-offs for Hong Kong with China becoming a member of the World Trade Organisation. These included: -

- a greater number of companies engaging in foreign trade and using Hong Kong as an intermediary;

- a greater role for Hong Kong's banks and securities markets in raising funds for Chinese enterprises; and

- potential large scale investment in Hong Kong's services sector as China's market becomes more mature and sophisticated.

Mr Leung said that Hong Kong's economic position as the region's premier financial, business and logistics hub could only be strengthened if there was a seamless interaction with the Mainland.

"That's why we are determined to facilitate the flows of people, cargo, capital, information and services between Hong Kong and the Mainland. We are taking initiatives to expedite travel across the boundary and pushing ahead with plans to smooth the flow of talented people into Hong Kong to maintain a top quality workforce," he said.

However, he said Hong Kong and the region was being hard hit by the worldwide slowdown.

"At the moment, Hong Kong people are drawing on every ounce of that renowned 'can-do' spirit as we work our way through the global economic downturn. But all of these challenges bring opportunities, so it would be extremely unwise to be writing off Hong Kong and the region," Mr Leung told the New York business people.

The Financial Secretary said it was natural for Hong Kong to be 'riding the wave of opportunities stemming from China's WTO membership', but this would not be done at the exclusion of its international role. Hong Kong had always been outward looking and had to trade with the world to survive.

"We will continue to nurture and promote our role as a regional player, a location where international corporations naturally look for the expertise, infrastructure, facilities and policies required for the efficient transaction of global trade and investment," Mr Leung said.

The Financial Secretary is in New York as the head of a delegation of Hong Kong business leaders attending the World Economic Forum (WEF) annual meeting.

During the meeting, Mr Leung will lead two international discussion groups - one a brainstorming session dealing with restoring global growth and the other on regional and global implications of China's economic resurgence.

He will also attend the Informal Gathering of World Economic Leaders which brings together the finance, foreign, trade and development ministers and the central bank governors of the G-20 countries.

Aside from meetings at the WEF, Mr. Leung has a full day program in New York. He will meet with senior management of various credit rating agencies and investment banks. Later in the evening, Mr. Leung will host a Hong Kong networking dinner for a group of global business and political leaders, and media guests.

The Hong Kong delegation to the WEF comprises:

(1) Antony Leung, Financial Secretary of the Hong Kong Special Administrative Region Government (HKSARG)

(2) Jacqueline Willis, Hong Kong Commissioner, USA

(3) Ronnie C. Chan, Chairman of Hang Lung Group

(4) Victor L.L. Chu, Chairman and CEO of First Eastern Investment Group

(5) Mervyn Davies, Group Chief Executive of Standard Chartered

(6)James W J Hughes-Hallett, Chairman of John Swire & Sons (HK)

(7) Charles Y.K. Lee, Chairman of Hong Kong Exchanges and Clearing

(8) Richard T.K. Li, Chairman and Chief Executive, Pacific Century CyberWorks

(9) Victor Lo, Chairman and Chief Executive of Gold Peak Industries (Holdings)

(10) Marjorie Yang, Chairman of Esquel Group

End/Friday, February 1, 2002

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Photo: Financial Secretary Mr Antony Leung said Hong Kong is the best place in the world for the world to enter the China market at a breakfast meeting organized by the Hong Kong Association of New York.