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Following are the welcoming remarks by the Financial Secretary, Mr John C Tsang, at the Hong Kong Services luncheon in St Petersburg, Russia today (June 4, St Petersburg time):
Distinguished Guests, Ladies and Gentlemen,
Good afternoon.
It is my great pleasure to be here in the spectacular city of St Petersburg.
St Petersburg has been described as the most Western city in Russia. Hong Kong is also known for its cultural blend of East-meets-West. This is one of the reasons we like to call Hong Kong, Asia's world city.
Both our cities have also experienced considerable transformation over the years. A century and a half ago, Hong Kong was little more than a fishing village and was once famously described as a "barren rock with hardly a house upon it". At the turn of the 20th Century the "barren rock" had become a bustling trading centre and soon transformed itself into a manufacturing hub.
Today, services dominate our economy, contributing more than 90% of our GDP. State-of-the-art soft infrastructure supports a wide range of traditional sectors such as shipping, logistics, aviation and construction.
We also provide world-class services to enhance new growth engines of our economy, including finance, tourism, conventions and exhibitions and creative sectors.
Of course, legal services play a vital role in maintaining Hong Kong's status as a fundraising centre and the location of choice for foreign firms in Asia.
We also have the rule of law, a fiercely independent judiciary, low and simple tax system and a free flow of information and ideas. Our currency, the Hong Kong Dollar, is fully convertible and our civil service is clean and efficient. These are some of the reasons that the US-based Heritage Foundation has ranked Hong Kong as the freest economy in the world for each of the past 15 years.
However, our trump card for services is a unique free trade agreement with the Mainland - what we call the Closer Economic Partnership Arrangement, or CEPA. CEPA is important because it gives Hong Kong companies greater access to Mainland markets. Earlier this year, CEPA was expanded to cover a total of 42 services areas. These included all the key areas that I have already mentioned and a lot more. The best thing about CEPA is that it is nationality-neutral, and overseas companies incorporated in Hong Kong, including Russian firms, enjoy the same full benefits of CEPA as local companies.
Ladies and Gentlemen, as the most Western cities in our respective nations, Hong Kong, and St Petersburg have an important role to play in the irreversible march towards globalisation. I also believe Hong Kong's advanced services sector can help Russian firms make the most of the business opportunities that are emerging in the Mainland of China and throughout Asia.
Of course, our Trade Development Council, provides an effective matchmaking service for overseas companies looking to the Mainland market. Members of the TDC who are here today will be happy to answer any questions that you may have.
Enjoy the lunch and I wish you all a prosperous 2009.
Thank you.
Ends/Thursday, June 4, 2009
Issued at HKT 17:15
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