Shandong province having officially kicked off the 2010 (Hong Kong) Shandong Week Monday, the opening ceremony of the Shandong-Hong Kong International Investment and Trade Fair was held at the Hong Kong Convention and Exhibition Center Tuesday, exhibiting achievements of the industrial powerhouse in Eastern China to lure more investment from Hong Kong businesses.

Jiang Daming, governor of Shandong said at the grand opening that the province has been working closely with the Special Administrative Region over the past decade. The two sides have made great strides in cooperating in a variety of business sectors, and Hong Kong has become Shandong's biggest outside investor in the past two years.

"Hong Kong businesses invested in 455 projects in Shandong last year, and the city is also our major platform for overseas financing. This year alone, enterprises from Shandong have opened up 25 representative offices in Hong Kong, and we expect more companies to come here to tap the international market," said Jiang.

Shandong brought to Hong Kong 300 major investment projects this year, involving different sectors that include high-tech, advanced manufacturing, environmental protection, tourism, culture and real estate. During the grand opening Tuesday, 61 project agreements were sealed on-site, involving investments totalling US$13.1 billion.

Jiang said the Shandong government will continue to coordinate with the SAR government in the future, optimizing the software of its investment environment and making the province more attractive to Hong Kong investors.

Hong Kong Financial Secretary John Tsang, delivered a welcome speech on behalf of the SAR government at the opening ceremony, where he said Shandong's tremendous strength in industrial production, coupled with the growing service sector and improving investment environment have provided increasing investment opportunities for Hong Kong enterprises. He said the two regions' complementary industrial and economic structure leaves great room for further cooperation.

"I think long-term competitiveness could be strengthened for both Shandong, a major industrial production base, and Hong Kong, the international financial, trade and shipping center, which stands out in traditional financial services, logistics, tourism, information and other pillar industries," said Tsang.

Tsang believes Hong Kong's sound legal system, simple tax system and a wide range of professionals with international contact networks could help enterprises from Shandong "go out" to attract more foreign capitals. Hong Kong's pillar industries will also open up new areas for cooperation.

A dozen cities in Shandong will also hold various events to seek investment from Hong Kong investors. The 2010 (Hong Kong) Shandong Week, jointly organized by the Shandong provincial government, the Hong Kong Trade Development Council and a number of business associations and local media, will conclude on May 14.

China Daily

(HK Edition 05/12/2010 page2)