Hong Kong Special Administrative Region and Canada announced Friday the signing of a Memorandum of Understanding (MOU) on investment promotion cooperation as both sides vowed to help smaller Canadian companies enter market on the Chinese mainland.

The MOU will also help identify strategic investments from Hong Kong into smaller Canadian companies who are seeking capital and local market expertise to launch business opportunities into Chinese mainland.

The Hong Kong Special Administrative Region Government Secretary for Commerce and Economic Development Frederick Ma and Canadian Minister of International Trade David Emerson jointly attended the MOU's signing ceremony.

"Canada places great importance on enhancing its commercial relations with Hong Kong Special Administrative Region and recognizes the benefit of increasing two-way investment between our economies," Emerson said. "Hong Kong, an international financial center, ranks third among Canadian investment destinations in Asia."

"By working collaboratively through targeted activities specified in the MOU, Canada and Hong Kong Special Administrative Region expect to significantly increase private sector investment activity in both markets," Emerson said.

Ma welcomed the MOU signing and highlighted Canada's long-standing recognition of Hong Kong as a strategic investment destination.

"This is an important step which reinforces the well-established ties between Canada and Hong Kong Special Administrative Region," Ma said. "We look forward to this MOU benefiting investors in both our economies, and promoting overall economic growth."

Ma encouraged Canadian companies to fully utilize the opportunities arising from the Closer Economic Partnership Arrangement (CEPA) between the Chinese mainland and Hong Kong.

The CEPA provides Hong Kong goods and services with preferential market access opportunities in the Chinese mainland. This will benefit foreign-owned or controlled companies incorporated in Hong Kong, he said.

A series of seminars will be jointly organized later this year in cities across Canada by the Hong Kong Commerce and Economic Development Bureau and Foreign Affairs and International Trade Canada to explain the benefits of the CEPA to Canadian business leaders.