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Following is the speech by the Financial Secretary, Mr John C Tsang, at a High-Level Networking Breakfast hosted by Invest Hong Kong in Santiago, Chile today (December 2, Santiago time):
Good morning everyone.
It is my great pleasure to meet you here in beautiful Santiago this morning. I am also grateful to Invest Hong Kong for organising this event.
This is my first full day in Chile, so thank you for helping to get my visit off to a flying start.
I am pleased to be leading a delegation of high-level business leaders from Hong Kong to Chile.
Our aim is to enhance links between our two communities and to promote business opportunities that will boost our bilateral ties.
The timing of our visit to Chile is ideal.
Hong Kong and Chile have bounced back strongly from the global economic crisis. I understand that Chile is forecast to see GDP growth of five per cent in 2010 and six per centnext year.
This is similar to our GDP growth forecast for Hong Kong of 6.5 per cent this year.
Over the past two decades, Chile has developed an extensive web of free trade agreements with a range of partner countries in the Americas, Asia, Europe and the Pacific region. These bilateral accords, strengthening trade relationships and network of FTAs are guaranteeing Chilean companies benefits all over the world.
Chile's FTA with Mainland China at the end of 2005 resulted in a significant increase in the volume of Chilean exports to the Mainland. In 2005, Chilean companies exported almost US$5 billion worth of goods to Mainland China. That figure doubled to US$10 billion in just one year.
Hong Kong is a premier international gateway into and out of Mainland China.
In Hong Kong, Chilean companies are involved in major sectors of our economy. These include banking, finance, transport, media, construction, catering and tourism.
Since Hong Kong's reunification with Mainland China in 1997, our city has maintained all its fundamental advantages under the principle of "One Country, Two Systems". Under this concept, Hong Kong people continue to run Hong Kong with a high degree of autonomy. We have the rule of law, a low and simple tax system and free flows of capital, talent and information.
Our four pillar industries are financial services, trade and logistics, professional services and tourism.
We have also identified six knowledge-based industries for strong potential growth. These are education services, medical services, innovation and technology, testing and certification, environmental industries and creative and cultural industries.
We welcome Chile's co-operation in developing these and other industrial areas.
Hong Kong and Chile both thrive on free markets and open trade.
We are using our experience in this area to break down barriers to trade with Mainland China.
Our closer co-operation with our neighbouring province of Guangdong and the dynamic Greater Pearl River Delta, or GPRD, directly benefits Hong Kong-based companies, including Chilean firms in Hong Kong.
The Greater Pearl River Delta is often called the "factory of the world" for its enormous manufacturing output, particularly in electrical products, toys and garments.
In the past 20 years, the GPRD has grown to become one of the most affluent and fastest growing regions in Mainland China, all on Hong Kong's doorstep.
Indeed, Hong Kong is Guangdong's largest trading partner. We are also the largest investor in the province, accounting for over 60 per cent of its total Foreign Direct Investment stock. Hong Kong companies employ some 11 million workers in the Greater Pearl River Delta.
Today, Hong Kong is a services-oriented economy with the services sector generating over 90 per cent of our GDP.
Also, as China's global financial centre, Hong Kong has unparalleled access to the Mainland's deep and liquid capital markets.
Last year, Hong Kong ranked number one in the world for total funds raised through Initial Public Offerings. Total funds raised last year exceeded US$31 billion. We have already passed that figure this year.
Hong Kong is also the offshore centre for business using the Mainland currency, the Renminbi. Key areas included Renminbi banking, Renminbi bonds and trade settlement with the Mainland using Renminbi.
Ladies and Gentlemen, these are some of the areas where I see huge potential for stronger ties between Chile and Hong Kong. And I have no doubt that we can enhance that relationship even further with a high quality Free Trade Agreement between Chile and Hong Kong, the freest economies in our respective regions, optimising the highly complementary strengths of our economies.
I look forward to learning more about this great country and how we can enhance our bilateral links during this visit. You will also find Invest Hong Kong to be a very effective and helpful partner.
Thank you very much.
Ends/Thursday, December 2, 2010
Issued at HKT 20:43
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