Located so close to the manufacturing mecca of Guangdong province, Hong Kong has long been a magnet for mainland companies looking to tap into the global capital markets or set up a gateway for international trade.

The influx of mainland investment into Hong Kong is certainly not news, but what is different, according to Invest Hong Kong, is that the trend is picking up substantially, and companies are becoming increasingly interested in value-added services.

"Last year, we helped 47 mainland companies start up offices here in Hong Kong," Associate Director of Invest Hong Kong Charmaine Wong said. "That is a sharp increase compared with 6 years ago, when there were none."

Other than a world-class stock market and well-developed infrastructure to support an international port, Wong said Hong Kong's creative sector is also a big draw for mainland companies looking to propel themselves into the global market, because of the emphasis on intellectual property rights.

Invest Hong Kong - a government-run investment- promotion agency - along with the Greater Pearl River Delta Business Council, has organized a two-day mission that includes seminars on various topics with representatives from creative-services industries.

The event seeks to provide the more than 60 participating delegates with a more complete picture of the advantages of Guangdong and Hong Kong cooperation.

Chen Yaohuan, vice president of the Guangdong Sub-Council of China Council for the Promotion of International Trade (CCPIT), said that privately owned companies in Guangdong still have a lot to learn about the advantages that Hong Kong can provide.

"They have a lot of experience with Hong Kong as a platform to raise capital," Chen said. However, he said that since Hong Kong's "software", including product designs and image branding, is superior to Guangdong's, it would be beneficial if further cooperation could be reached.

However, Chen did admit that more needs to be done in order for Guangdong enterprises to understand the competitive edge of Hong Kong. "There are a lot of enterprises that are looking to move out into the international market," Chen said. "Not only should Guangdong companies be proactive, Hong Kong professionals should come to us as well."

He said Hong Kong professionals should familiarize themselves with the needs of mainland companies in order to move in to provide services and ensure the territory's competitive advantage.

Other than this Guangdong delegation, Invest Hong Kong aims to lure mainland investors to the territory by holding seminars in seven first-tier provincial cities over the next six months.

(HK Edition 06/06/2008 page2)