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The Hong Kong government is strongly committed to helping more Mainland Chinese companies expand internationally, its investment chief said today.
"Supporting the realisation of the potential and ambitions of Mainland businesses ready and willing to move beyond the domestic market is a top priority for us," said Mr Mike Rowse, Director-General of Investment Promotion at Invest Hong Kong, the Special Administrative Region's investment promotion agency. "We are uniquely positioned to facilitate such a transition, and have a very solid track record in the field."
Mr Rowse was speaking to some 200 Mainland executives and officials during the 10th China International Fair for Investment and Trade in the southern Chinese city of Xiamen, Fujian province. He was speaking on the theme: "Hong Kong – Your Platform to Go Global, Capitalise on Hong Kong's Professional Services for International Expansion."
"Private companies in the Mainland are maturing quickly, and many are capable of going global," he said. "We give them the best possible chance of success. They can test and fine-tune their products in our full-blown market economy, and use it as a springboard to move further afield."
InvestHK helped 21 Mainland companies establish or expand operations in the SAR in January-June, and expects by year's end to top the record of 38 achieved in 2005.
The agency offers a wide range of services, entirely free of charge. These include advice on Hong Kong's regulatory and business environments, sector-specific consultations and detailed guidance on incorporation. It also facilitates contacts with other government departments in the SAR, and provides introductions to prospective business partners.
Hong Kong is Asia's largest recipient of foreign direct investment after the Mainland. FDI inflows reached US$35.9 billion last year, up from US$34 billion in 2004 and US$13.6 billion in 2003. For the January-March 2006 period, inflows amounted to US$13.16 billion.
Some 350 Mainland firms have listed on the Hong Kong Stock Exchange since 1993, raising US$160 billion in equity. They include Fujian-based gold mining concern Zijin Mining and, in May this year, telecommunications equipment designer and manufacturer DBA Telecom.
The intensification of Hong Kong's campaign to attract Mainland firms includes the recent expansion of InvestHK promotion offices in Beijing and Guangdong, and the opening later this year of new facilities in Shanghai and Chengdu.
"A bigger and broader presence enables us to better reach out to potential investors and cater to their specific needs," Mr Rowse said.
"Competition for investment across the Asia-Pacific region is keen. But we have no doubt that Hong Kong can maintain and enhance its competitive edge," he added.
Mr Rowse paid tribute to the "exemplary co-operation" of InvestHK's counterpart agencies in the Mainland government, including the Ministry of Commerce. "The Central Government, not least the Ministry of Commerce, is very supportive of our efforts to make known the advantages, opportunities and services Hong Kong has to offer to Mainland companies," he said.
"It is a mutually beneficial relationship. The ministry has a "going out" policy, and we at Invest Hong Kong are extremely well-placed to support that policy. This is a very clear example of how Hong Kong, acting in its own interests, can also serve the national interest -- a win-win situation for all concerned.
"The future is particularly promising, Mr Rowse added, noting that the number of companies authorised by the ministry to invest in Hong Kong surged by 58% last year, to 253. In the first half of this year, 105 companies were approved by the ministry with planned investments amounting to US$405 million.
China's recently promulgated 11th Five-Year Plan reaffirms Hong Kong's status as an international centre for financial services, trade and shipping, and calls for enhanced cooperation in the areas of industrial and infrastructure development, energy and environmental protection.
Ends/Friday, September 8, 2006
Issued at HKT 18:22
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