More Chinese Private Firms to Gain Access to Int'l Market Through HK

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Last updated at: (Beijing Time) Wednesday, January 09, 2002

More Chinese Private Firms to Gain Access to Int'l Market Through HK

First Forum on the Development of Private Enterprises in China Held in Hong Kong

More private enterprises in the Chinese mainland will gain access to the international market through Hong Kong, to grasp business opportunities brought by China's entry in the World Trade Organization (WTO).

As an international financial and trade center, Hong Kong has long served as a bridge linking the Chinese mainland and the outside world. Hong Kong's local enterprises and private enterprises in the mainland can combine their advantages and complement each other.

At the First Forum on the Development of Private Enterprises in China held in Hong Kong Tuesday, Jing Shuping, president of the All-China Federation of Industry and Commerce, said enterprises inthe mainland and Hong Kong have great potential for cooperation, and called on both to increase exchanges.

The mainland private enterprises, which emerged soon after China's introduction of the reform and opening-up policy, have witnessed great expansion in the past two decades.

Statistics from the State Administration for Industry and Commerce indicate that by the end of June 2001, there are 1.89 million private enterprises in the mainland, with a total registered capital of 1.5 trillion yuan (181 billion U.S. dollars)and a total of 21.19 million employees.

Jing pointed out that private enterprises in the mainland is now facing an unprecedented chance of development. Factors such asChina's accession to the WTO, the western region development, and economic restructuring all offer them broader space for expansion.

He believed that the state-of-the-art financial and logistic facilities and management expertise of Hong Kong can help private enterprises in the mainland gear their business operation with theinternational market.

Eden Woon, director of the Hong Kong General Chamber of Commerce, said China's fast economic growth after its WTO accession will lead to a number of market capitalization activities among mainland enterprises, in the forms of merger, acquisition, takeover and bond issue.

Hong Kong's experience and complete system of financial servicewill enable mainland enterprises from various industries, including private enterprises, to raise funds from international institutional and individual investors, he said.

A number of mainland-based private enterprises, such as Euro-Asia Agriculture, China Rare Earth and Greencool Technology, have listed in the Main Board and Growth Enterprise Market of the StockExchange of Hong Kong.

Market analysts predict that more Chinese private enterprises will be listed in Hong Kong in the coming year.

As for the professional service, both Jing Shuping and Eden Woon agreed that there is great potential of cooperation between mainland private enterprises and their Hong Kong counterparts.

Mainland private enterprises can introduce management staff from Hong Kong to help them innovate enterprise management, Jing said, adding that there will be an increasing demand for management talents with global insight, after China's WTO entry and with the expansion of private enterprises.

Compared to those from Europe and the United States, managementstaff in Hong Kong is of unique advantage in running business in the mainland, and is more acceptable by mainland private enterprises, Jing noted.

Woon also pointed out that Hong Kong is quite experienced in establishing brands and is able to help mainland enterprises promote corporate profile in the international market.

Some Chinese brands, like Haier, Legend and TCL, have entered into the international market. Woon said mainland enterprises mustmake full use of Hong Kong's advantages in market promotion to consolidate their prestige and bring their brands to a higher level.

He said that in the on-going globalization, the mainland and Hong Kong reply on each other in economic growth.

Mainland enterprises, including private enterprises, are in great need of professional service with international standard, and the advantages of Hong Kong in the financial, logistic and professional services meet exactly their needs, Woon added.