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    Following is the speech (English only) by the Acting Chief Executive, Mr Henry Tang, at the Opening Ceremony for the Sun Hung Kai Properties Nobel Laureates Distinguished Lectures and Inauguration Ceremony of the Institute of Economics, Chinese University of Hong Kong this morning (June 3):

Vice-Chancellor Professor Lau, Dr Raymond Kwok, Distinguished Guests, Ladies and Gentlemen,

    Good morning.  It is my great pleasure to welcome three Nobel laureates and three world-renowned economists to Hong Kong.  I would like to thank the Chinese University of Hong Kong and Sun Hung Kai Properties Limited for inviting six outstanding scholars to share with us their insights on the emergence of China in the world economy.

    Hong Kong benefits a lot from the rise of our motherland.  In as early as the late 1970's, our industrialists were amongst the first to realise the great potential of the Mainland, and aggressively expanded their operations northward.  In just a quarter of a century, Hong Kong industrialists now employ about 11 million workers in the Pearl River Delta region alone, which are over three times the Hong Kong workforce. In the process, Hong Kong has transformed itself into a high value-added, service-oriented economy, representing 87 per cent of our GDP, serving the "world factory" right across our border.

    Yet, we are now seeing only the beginning of China's rise. It will transform the global economic and political landscape.  China's per capita GDP has just surpassed the US$1,000 threshold and is growing rapidly.  China is already considered to be a major economic power in the world.  Their economic power will continue to rise and the question is "how fast". Of course, the rise carries with it enormous challenges, particularly in developing the "soft" infrastructure, which is a prerequisite for sustaining a market economy.  

    On this front, Hong Kong can and shall play a useful part, adding value to the reform process.  Our legal system, financial infrastructure and regulatory regime are all international standard.  It is not surprising that many Mainland companies use listing on the Hong Kong Stock Exchange as a goal to drive reforms in their corporate governance.  With the Closer Economic Partnership Arrangement in place, Hong Kong's service providers can now easily access the Mainland market.  These service providers, similar to our industrialist pioneers, bring with them special expertise, global network and cutting-edge technology to the Mainland.  They might not employ another 10 million workers on the Mainland anytime soon, but I am sure they would help bring the Mainland's economy forward and accelerate the modernisation process.

    Today, we are not only going to hear from six top-notch economists, as well as local experts, on a topic that interests political and economic leaders worldwide.  We are also celebrating the inauguration of the Institute of Economics of the Chinese University of Hong Kong, which has the potential to become a leading research institute in the region.  At a time characterised by challenges and opportunities, we will certainly benefit from your insights and advices.  I wish you all fruitful and intellectually stimulating exchanges during the ensuing lectures, and for our overseas guests, a most enjoyable stay in Hong Kong.  Thank you.

Ends/Friday, June 3, 2005

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