HONG KONG: Some 22 new investment projects totaling $1.06 billion have been confirmed by both Xiamen and Hong Kong companies at an investment promotion conference in Hong Kong yesterday.

The projects come from a wide range of sectors including new energy, energy saving, biological engineering, optical electronics, environmental protection, food processing, logistics and tourism, according to Xiamen government officials.

"More investment co-operation between the two cities will be brought to the table by the end of this year or early next year," said Yu Weiguo, party chief of Xiamen.

Xiamen, a port city in Southeast China's Fujian province, is cultivating a breeding ground for information technology, advanced manufacturing and innovative businesses and industries. Hong Kong investors, who are already major contributors to Xiamen's overseas investment, are invited to take part in that development.

"Hong Kong companies have long been making important investments in Xiamen. We welcome more companies to invest in Xiamen," Yu told reporters at a press briefing.

Known for its exquisite marine scenery and strategic adjacency to Taiwan, the city is witnessing an increase in the development of innovative industries, and is set to maintain its double-digit annual economic growth.

"We must improve and upgrade the city's business and industrial structure. Without advanced industries, the city's economic development (plans) will become empty talk," Yu said.

Xiamen is also striving to expand urban development to its long-isolated outlying islands.

"The center of Xiamen has been well-developed over the years, but its development has created a gap with the outlying islands in Xiamen," Yu said. "To achieve sustainable development, we must integrate central Xiamen with its outlying islands."

To facilitate this integration, an undersea tunnel, which is connecting Xiamen with the Xiang'an district, has been completed this month. The tunnel greatly reduces the traveling time between the two areas from one and a half hours, to just eight minutes.

The record-making construction, which involves a total investment of 3.2 billion yuan, is the largest-ever infrastructure project in the city.

Enhanced transportation helps improve Xiang'an's attractiveness as a destination for investment. Some Western companies, giant State-owned enterprises and Hong Kong-funded companies are now showing an interest in sharing the success of the district's development, after having noticed how the local government has paved the way for inbound investment, Xiamen's government officials said.

Mingfa Group, a leading property developer in Xiamen, raised HK$2 billion early this month in a Hong Kong initial public offering.

(HK Edition 11/17/2009 page4)