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Sharp rise recorded in investment from Hong Kong, Macao
By Xin Yi (China Daily)
Updated: 2009-10-15 07:51
Hong Kong and Macao further strengthened business ties with Guangdong province through more than $4.6 billion investment in the first five months of 2009, an increase of nearly 20 percent over the same period last year. The figure accounted for more than 60 percent of the province's total used overseas investment. The Guangdong provincial government partly credited the increase - which came despite the current global economic slump - to a new strategic outline for development and reform in the Pearl River Delta. Selected as the nation's pilot area for deepening reform, Guangdong's nine cities in the delta enjoy close ties with Hong Kong and Macao, which the provincial government plans to expand to create more opportunities. All three export-oriented economies have been affected by the global financial crisis and the impact is continuing, said Hou Yongzhi, researcher of the Development Research Center of the State Council. Weathering the difficult time requires increased information exchange, integrated resources and enhanced cooperation, he said. Long-term implementation of the blueprint for integration will sharpen the competitive edge of the entire area, he added. Expanded cooperation between Hong Kong, Macao and Guangdong is a part of the outline, especially for infrastructure and industries, said Du Ying, vice-director of the National Development and Reform Commission, the nation's top economic planning body. While industrial cooperation between Hong Kong and Guangdong over the past 30 years has mostly been in manufacturing, links are now expanding to include services. Guangdong-based manufacturing remains as a top sector for Hong Kong capital, but service sector is registering sharp growth. Hong Kong Chief Finance Secretary John Tsang Chun-wah said assertions that Guangdong's developing service industry will pose a threat to Hong Kong are "narrow minded" and "lack vision". With complementary resources, the industrial cooperation will "surely benefit each other", he said. The outline has reinforced Hong Kong's position as a financial center and encourages companies in the delta to raise capital on the Hong Kong stock exchange. Secretary for Economy and Finance Tam Pak Yuen said that Macao authorities will capitalize on local cultural heritage and increase cooperation with Guangdong province on tourism. Over the past six years, 70 million tourists from the mainland have visited Macao and Hong Kong. Since the Close Economic Partnership Arrangement with Hong Kong and Macao began in 2003, trade and investment between the mainland and the two regions boomed. By July, exports to Guangdong worth $2.3 billion from the two economies have enjoyed zero tariff, eliminating 1.4 billion yuan in duties from Hong Kong and Macao. To date, 250 favorable policies in 42 fields have been granted to Hong Kong service businesses and 237 policies in 41 fields to Macao. More than 2,500 service companies from the two regions have now applied to invest on the mainland. Fifty-six banks from the two regions have been authorized to transact renminbi business for individuals, with a total deposits nearing 60 billion yuan. Vice-Governor of Guangdong Wan Qingliang said that the new integration plan will focus on innovation, improvements in the processing trade, exploring abroad for new business opportunities and optimizing business environment of the delta. Wan encouraged the entrepreneurs in the three regions "to restore faith and grasp opportunities created with the outline to build a bright future". (China Daily 10/15/2009 page4) |
