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The Secretary for Financial Services and the Treasury, Mr Frederick Ma, said in Guangzhou today (August 5) Hong Kong welcomed enterprises in the Pearl River Delta to utilise the Hong Kong capital market in raising capital and enter the international market.

"Hong Kong, as a premier regional financial centre, has much to offer to enterprises in Guangdong in raising capital in the international market", Mr Ma said at a conference hosted by the HKEx to promote listing in Hong Kong.

"Strengthening economic ties, especially co-operation in financial services, between Hong Kong and Guangdong is conducive to the long-term development and the common goal of both places," Mr Ma said.

"The listing of Mainland enterprises in Hong Kong not only can add impetus to the enterprises themselves, but also bring forth new financial products to Hong Kong and make our stock market more attractive. This will result in a win-win situation."

Mr Ma noted that Hong Kong is the Mainland's major international capital centre. As at end of July, a total of 242 Mainland enterprises were listed in Hong Kong, including 81 H shares companies, 73 red chips companies as well as 88 Mainland enterprises that are registered overseas. The capital raised amounted to over HK$ 780 billion. Among the H shares and red chips companies listed in Hong Kong, 23 are Guangdong companies.

"To strengthen the role of Hong Kong as an international financial centre and the premier capital raising centre for the Mainland, the SAR Government and relevant regulatory bodies will continue to improve the regulatory regime and business environment in Hong Kong, taking into account international development," Mr Ma said.

Noting that good corporate governance is a key to establishing and maintaining the reputation and competitiveness in the international market, he said that the Hong Kong Government has spared no efforts in maintaining good corporate governance standard on par with the international standard.

Looking ahead, Mr Ma said, "the HKSAR will continue its efforts in enhancing the status of Hong Kong as an international financial centre, as well as acting as a gateway to the international market for Mainland enterprises."

End/Tuesday, August 5, 2003

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