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Following is the speech delivered by the Chief Executive, Mr C Y Leung, at the HK-US Business Council breakfast meeting in New York this morning (June 12, New York time):
Maurice, Marjorie, Ladies and Gentlemen,
Good morning, I am very pleased to have this opportunity to join you all today.
First and foremost, I would like to thank you all for your excellent work in promoting Hong Kong-US business relations.
This is the final meeting on what has been a short but extremely useful visit to the US. At every stage and on every level, I have been very encouraged by the strong interest of our friends here to strengthen our bilateral ties for a win-win result. In fact, it is a triple-win, because what is good for Hong Kong-US business relations is also good for the overall China-US relations.
In particular, the "Think Asia, Think Hong Kong" symposium organised by the Hong Kong Trade Development Council here in New York yesterday was another round of our reinforcement efforts. No doubt this momentum will continue when the "Think Asia, Think Hong Kong" roadshow moves to Los Angeles for another large-scale symposium on Friday.
This visit to New York has provided great opportunities for us to highlight some of the work that my Government has been doing, in strengthening our collaboration with our government and business counterparts in the Mainland of China and what business prospects, including trade and investment prospects this means for companies here in the US.
When it comes to doing business, Hong Kong is the connector-in-chief in linking the US to the Mainland of China and to markets across Asia. This role has always been obvious in the history of Hong Kong, but has evolved and expanded more rapidly in the past 35 years, since the opening up and reform in China. Going forward, as China's economy continues to forge ahead and as the markets of China become more open, there is also a great deal of scope to reinvent and reposition ourselves. And by "ourselves", I mean not just Hong Kong, but all our business partners, including US business partners.
Allow me to give you a snapshot of key recent developments.
First, we have secured the support of the National Development and Reform Commission to become more involved in implementing and formulating the next National Five-Year Plan, our country's development blueprint, which will be implemented in two and a half years. This will help meet the aspirations of Hong Kong and make the most of our city's advantages in our country's development.
Second, we have set up a joint working group with our counterparts across the boundary to improve the implementation of our free trade pact, the Mainland and Hong Kong Closer Economic Partnership Arrangement, or CEPA. This will help Hong Kong-incorporated firms, including US companies incorporated in Hong Kong, to iron out problems related to interpretation and implementation of CEPA provisions and to reach buyers and suppliers across China.
Third, we are working with our neighbouring province of Guangdong to achieve liberalisation of trade in services next year.
And fourth, the effective "early and pilot measures" approach to cross-boundary business initiatives between Hong Kong and Guangdong will be expanded. This approach will cover eight provinces plus the Guangxi Zhuang Autonomous Region that make up the Pan-Pearl River Delta region. This accounts for about a third of China's population and roughly one third of the country's GDP.
These are four significant developments that will enhance Hong Kong's role as a gateway to the Mainland of China for trade and finance as well as ideas, contacts and much more.
As an international financial centre, we are firmly plugged into the capital markets in New York and other financial capitals around the world. We are also China's global financial centre.
In other words, we have a very high stake in, and huge commitment to, promoting international financial stability and smooth financial market liberalisation in the Mainland of China.
With our transparent regulatory regime, free capital flows, the rule of law, independent judiciary and international connections, Hong Kong is playing a lead role in the internationalisation of the Mainland Chinese currency, the Renminbi.
With the full support of the Central People's Government, our city has successfully launched three key initiatives, namely, offshore Renminbi banking, Renminbi bond issuance and overseas trade settlement using the Mainland currency. Each of these initiatives would have been virtually unthinkable just a decade ago.
Our efforts are focused on two key areas.
First, we are working with our counterparts in Beijing and the financial services industry to broaden the range of Renminbi-denominated products to better suit the needs of investors. The recent expansion of the RMB Qualified Foreign Institutional Investor (RQFII) pilot scheme will help to enhance Hong Kong's position as an offshore centre for Renminbi business.
The second area is the expansion of our ties with other financial centres globally to share our experience and promote the use of Renminbi overseas. Ultimately, the widespread use of the Renminbi is crucial for it to become an international currency. I look forward to working with finance chiefs here in the US to promote financial connectivity between us.
Ladies and gentlemen, Hong Kong's key feature as a two-way connector between the Mainland of China and the rest of the world is the principle of "One Country, Two Systems". We offer the advantages of "One Country" in the Mainland of China, and "Two Systems" in working with our partners in the international arena.
Added to the benefits of "One Country, Two Systems" is the fact that Hong Kong people enjoy a high degree of autonomy. This is prescribed in our Basic Law – a constitutional document. We have autonomy in virtually all areas of our city's operations and in managing external affairs related to economic, trade, finance, shipping, communications, tourism, culture and sports. The only exceptions are defense and foreign affairs, which are rightly handled by the CPG.
We are here to share our competitive edge. We are also keenly aware of competition. We live in a highly competitive region. These are very competitive times for cities in Asia.
But Hong Kong always thrives on competition. This is why we leave our doors open. This is why we are the freest economy in the world. My Government will be positive and proactive. We also know that we cannot play the role of entrepreneurs. Instead we want to hear from businesses big and small, local and foreign. We want to hear concrete proposals as to what the government should do. We want to hear them direct. This is why we are in the US.
Thank you very much and I hope that we will see you in Hong Kong very soon.
Ends/Wednesday, June 12, 2013
Issued at HKT 21:42
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