**********************************************
The Chief Executive, Mr Donald Tsang, held a bilateral meeting with the visiting President of the Russian Federation, Mr Dmitry Medvedev, at Government House today (April 17) and hosted a lunch banquet in his honour.
The President visited Hong Kong at the invitation of the Chief Executive who visited Moscow eight months ago. The two leaders discussed ways to increase bilateral collaboration in a number of areas.
The President noted that while the growth in trade and passenger flow between the two places in recent years has been impressive, there was colossal potential for further increase.
He also said that Russia was keen to tap Hong Kong's rich experience in financial services to develop its own, and that Hong Kongˇ¦s strength in financial services offered much room for cooperation between the two places. He would like to see more Russian firms listing in Hong Kong, and more participation of Hong Kong companies in Russiaˇ¦s economic development.
Both sides agreed to pursue and work towards an early commencement of negotiation of agreements on avoidance of double taxation and investment promotion and protection. They were pleased to note that the negotiation of an agreement for mutual legal assistance in criminal matters was approaching conclusion.
The two leaders also agreed to strengthen collaboration in science, culture and education, including collaborations among universities of the two places.
Congratulating Russia for its successful bid to host the 2018 World Cup, Mr Tsang invited Russia to send a football team to play in Hong Kong. The President responded positively. He also welcomed the idea of staging a Russian cultural festival in Hong Kong, and offered possible Russian contributions to the development of West Kowloon Cultural District.
"Our bilateral relations have come a long way in a relatively short time, thanks to the strong drive and determination of the two governments and the entrepreneurial spirit of our business communities," the Chief Executive said in his address at the lunch banquet.
In just the past two years, Hong Kong and Russia have signed a mutual visa-free travel agreement. Hong Kong has launched direct passenger flights to Moscow. And both sides have staged various business events in each other's cities.
"Another breakthrough last year was the first listing of a Russian company on the Hong Kong stock market. So far two companies with Russian background have listed here," he said.
The Chief Executive welcomed the trend of Russian firms making the most of Hong Kong's capital-raising expertise, adding that overseas firms listing here could benefit from wealthy investors here and Asia as well as from institutional investors in Mainland China.
Citing Hong Kong's strength as a stable and efficient platform for Mainland trade settlement in Renminbi, Mr Tsang encouraged Russian firms to issue Renminbi-denominated bonds in Hong Kong.
"VTB Bank achieved a successful Renminbi bond issue last year ˇV the first by a Russian company. Another one may be coming."
The Chief Executive also called on Russian firms to expand their reach in the Mainland through CEPA, under which companies incorporated in Hong Kong can enjoy enhanced access to Mainland markets, across 44 services areas.
The Russian President said at the banquet that Russia-Hong Kong cooperation was becoming a significant component in the overall picture of strategic partnership between Russia and China.
The President encouraged Hong Kong's businessmen to participate in the implementation of the 2009-2018 Cooperation Programme between Russia and China, as well as Russia's regional development programmes.
The President led a business delegation on a two-day official visit to Hong Kong and was scheduled to leave the city in the afternoon today.
Last year, the value of trade between Russia and Hong Kong grew more than 62 per cent year-on-year, totaling almost $20 billion.
Ends/Sunday, April 17, 2011
Issued at HKT 17:31
NNNN
Windows Media format
Real Media format
