SHANTOU, Guangdong: A number of investment projects were signed between Hong Kong enterprises and the government of this city in eastern Guangdong province yesterday.

The deals, which mostly involve energy and large infrastructure projects, will help stimulate the economic and social development in Shantou, which millions of overseas Chinese hail from.

"Most projects are invested by overseas Chinese businesses, especially those from Hong Kong," said Cai Zongze, mayor of Shantou, at the first East Guangdong Overseas Chinese Expo and Shantou Trade Fair yesterday.

As many as 120 projects with an investment of more than 78 billion yuan were signed at the expo.

The huge investment by overseas Chinese business people over the past decades has helped the city cope with the global financial crisis, said Cai.

"Shantou has not been affected as much as other regions by the global financial turmoil and the economic slowdown, thanks to the huge and continuous investment from overseas Chinese business people," said Cai.

"Investment by Hong Kong business people who hail from Shantou has played an important role in the city's economic and social development. They have a strong passion for their home towns," said Cai.

The city has approved about 5,000 Hong Kong-invested enterprises, accounting for 81 percent of the total overseas-invested companies.

Albert Lee, a member of the Hong Kong Chiu Chow Chamber of Commerce, an NGO for business people from the eastern part of Guangdong province, said: "Overseas people still have strong interests in investing in their home towns, despite the global economic and trade slowdown."

Lee, however, suggested more investment for high value-added industries in the city.

(HK Edition 11/12/2008 page2)