HONG KONG: Heilongjiang provincial officials have secured a pledge from hong Kong companies to invest some $8.24 billion in 67 development projects in the province, Governor Li Zhanshu said yesterday.

Agreements covering the 67 projects were signed by both parties during the ongoing Heilongjiang-Hong Kong Economic and Trade Cooperation Conference in the city, which opened on May 17 and is due to end today.

Ye Xiaofeng, who heads Heilongjiang's Commerce Department, said that of the 67 projects, the financial sector attracted 5 to 10 billion yuan.

The projects that will be supported by Hong Kong firms include 39 contracted agreements and 28 letters of intent.

The provincial government presented 500 projects to the conference in a bid to attract up to 100 billion yuan of investments.

The development projects cover a wide array of industries, including bio-technology, food processing, service outsourcing, finance, tourism, real estate, petro-chemicals and equipment manufacture.

"We expect Heilongjiang to post this year an 11 percent growth in gross domestic product (GDP), which is just 0.8 percent lower than last year," Li said. "Considering the uncertain external environment, it would take great efforts for us to achieve our goal," he added.

Traditionally the largest investor in Heilongjiang, Hong Kong firms have plowed as of the end of last year some $8.73 billion in about 2,900 projects in the province. Three Heilongjiang- based enterprises are currently listed on the Hong Kong stock exchange and 11 others have invested in the city.

"Aside from seeking investments, we also look forward to more cooperation with Hong Kong in various areas," Li said.

Heilongjiang, located in Northeast China, enjoys a distinct edge over other provinces in heavy machinery, petrochemicals, energy, food processing and bio-technology.

Traditional energy-related industries have always been the province's economic engine as it has abundant natural resources, with Daqing Oil Field accounting for over half of the nation's onshore oil output and contribute 80 percent of the province's total revenue.

However, the volatile movement of oil prices in the world market has prompted the Heilongjiang provincial government to accelerate the development of other sectors, such as bio-technology, in order to maintain a long-term competitive edge.

(HK Edition 05/22/2009 page16)