SAR-Heilongjiang trade, investment robust

Hong Kong Chief Executive Donald Tsang and 100 business leaders from Hong Kong paid a visit to Harbin, capital of Heilongjiang province, from July 19 to 21 to discuss the opportunities of a closer relationship. It was the highest-level visit ever from Hong Kong, laying the groundwork by both sides for further exchanges.

Trade in recent years between Heilongjiang and Hong Kong has become increasingly robust, with Hong Kong playing a prominent role in the province's economy.

Today the island is the most important source from which Heilongjiang draws on overseas capital and investment. At the end of June 2008, Hong Kong's total investment in Heilongjiang reached $5.62 billion.

The number and scale of investments from Hong Kong continues to grow, especially after week-long promotions in 2004 and 2006 that had notable effects on both sides.

In November 2004, a Heilongjiang (Hong Kong) Activity Week was held in Hong Kong, with themes of "a positive response to the policy of the rejuvenation of the old industrial bases in the Northeast", and to jointly develop the Russian market.

The week laid a solid foundation for cooperation, with Heilongjiang bringing to Hong Kong a package of investment projects, then signing a series of contracts with Hong Kong businessmen.

The week resulted in 58 agreements with a total investment of $4.028 billion for projects ranging from energy and hi-tech to equipment manufacturing, infrastructure, agricultural produce, processed foods, timber, building materials and medicine.

Heilongjiang also established a permanent business delegation in Hong Kong that bridges economic cooperation between the two regions.

Frequent visits have followed, with more than 2,300 enterprises and 13,500 people from Hong Kong arriving in Heilongjiang, including the Hong Kong Trade Development Council, the Hong Kong General Chamber of Commerce, the Hong Kong Chinese Manufacturers Association, government organizations and business associations.

The trips helped promote rapid growth in investment to Heilongjiang by Hong Kong and Macao businessmen.

In 2006, contracts and actual investment in Heilongjiang from the two regions registered double-digit growth compared with the same period of the previous year.

Trade between the two regions totaled $590 million in 2006, triple the amount of two years previous.

In turn, more Heilongjiang enterprises are expanding into Hong Kong.

A number of Heilongjiang enterprises have been listed on the Hong Kong stock market, including Harbin Dynamics, Daqing Petrochemical, Guangyu International and Harbin Beer Group, all of which were well received on Hong Kong's capital market.

(China Daily 08/04/2008 page8)