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Following is the speech by the Financial Secretary, Mr John C Tsang, at the Sixth Plenary of the Hong Kong-France Business Partnership in Paris today (October 21, Paris time):
Distinguished Guests, Ladies and Gentlemen,
Good morning.
It is a great pleasure for me to be here in romantic Paris for the Sixth Plenary Meeting of the Hong Kong-France Business Partnership.
I am sure that this plenary will build on the great progress this Business Partnership has made over the years.
Indeed, Minister Lagarde and I have just signed a new agreement that will provide added momentum to further boosting business links between France and Hong Kong.
The Memorandum of Understanding on the Avoidance of Double Taxation that we have just signed underscores our close bilateral relationship. It will provide even greater incentive for business people like yourselves to expand the flow of business, knowledge and talent between France and Hong Kong.
In the post-global financial crisis era, I believe Hong Kong can play a highly effective role as the business and financial centre for French firms in Asia.
Hong Kong has rebounded relatively strongly from the financial crisis. We predict GDP growth this year of between 5 and 6 per cent. Our exports rose 26 per cent in the first eight months of this year compared to the same period in 2009.
Our connectivity with Mainland China has also been strengthened this year, with the signing in April of the Framework Agreement on Hong Kong/Guangdong Co-operation. The Framework Agreement will further break down barriers to trade and investment between Hong Kong and our neighbours in Guangdong Province.
This is in addition to our unique free trade agreement with the Mainland, called the Closer Economic Partnership Arrangement, or CEPA for short. French firms incorporated in Hong Kong can enjoy the full benefits of CEPA in accessing the vast markets in Mainland China.
France is our fifth largest trading partner among EU States with bilateral trade last year exceeding Euros 4.7 billion (HK$52 billion).
In the first seven months of this year, the value of our bilateral trade with France increased almost 20 per cent (19.9%) year-on-year. This reverses a 17 per cent (16.9%) decline in 2009.
French brands are great favourites, not only with Hong Kong people but also with our visitors about 30 million each year.
Our growing number of visitors from the Mainland often makes a beeline for French products which are known for their high quality, good value and chic image.
But I will mention a company that has broken new ground in terms of leveraging on Hong Kong's advantages.
In April this year, fragrance company, L'Occitane, became the first French enterprise to list on the Hong Kong stock market. It raised more than 500 million Euros (Euro 517 million/HK$5.5 billion) through its Hong Kong IPO.
As well as raising capital, a listing in Hong Kong can also lift the profile of a company and its products in our part of the world. And because of our city's reputation as a global financial centre alongside London and New York, an IPO in Hong Kong can add power to a brand.
I encourage more French businesses to take advantage of Hong Kong's potential as a capital-raising centre and to leverage on our reputation for quality and reliability.
Ladies and Gentlemen, I hope that I have provided you with some food for thought, and I wish that the Sixth Plenary Meeting will be a resounding success.
Thank you very much.
Ends/Thursday, October 21, 2010
Issued at HKT 17:33
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