HK, Shanghai, Twin Engines of China's Economy: InvestHK

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Last updated at: (Beijing Time) Tuesday, January 07, 2003

HK, Shanghai, Twin Engines of China's Economy: InvestHK

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Hong Kong and Shanghai were to act as twin engines of the Chinese economy, and Hong Kong had to develop strong points in face of fierce challenges, Mike Rowse, director-general of InvestHK said here Monday.

"Companies are still coming in and expanding their operations in Hong Kong, while we also notice relatively a few regional corporations go to Shanghai," said Rowse, "Yes, there is a much intense competition from Chinese mainland."

"If you are selling to the mainland market, you ought to be looking at the Yangtse Rive area, because it has got a population of over 300 million people," Rowse added, "but China is very big country and needs more than one business center."

Rowse said he believed Hong Kong had more international scores than any other business center in Asia, and he pointed out the three areas of Hong Kong's advantage: an unique international financial center, accumulated experience of doing business profitably, and a special springboard for the mainland campanies to go international.

"In terms of foreign direct investment, we continue to be second only to the mainland in the entire Asia Pacific region, andthe number of regional headquarters set up by foreign-owned companies in Hong Kong reached another all-time high, which has demonstrated its competitiveness, " Rowse added.

InvestHK assists 117 foreign companies to set up operations in HK in 2002

Invest Hong Kong, a government department responsible for investment promotion, had helped 117 foreign companies to set up or expand existing operations in Hong Kong in year 2002, said its Director-general Mike Rowse here Monday.

This is the highest ever number since the department was established in July 2000 and the number of regional headquarters (RHQs) set up by foreign companies in Hong Kong also reached an all-time high in 2002 at 948.

The 117 projects generated total investment of more than 1.36 billion HK dollars (174 million US dollars) and created over 2,070jobs, Rowse said.

"In terms of Foreign Direct Investment (FDI), we continue to be second only to the Chinese mainland in the entire Asia Pacific region," he said, adding that it is encouraging as overall FDI flows to the Asia-Pacific declined by 24 percent to 102 billion US dollars.

According to the Census and Statistics Department, FDI inflow for the first three quarters of 2002 reached 105.24 billion HK dollars (13.49 billion US dollars).

Rowse also announced several major projects that were expected to bring more investment and job opportunities in the future, namely, the Disneyland project, another major tourism project on Ma Wan Island, a tourism and entertainment project in Central and the new International Exhibition Center at Chek Lap Kok.

"I am confident that 2003 will be another very busy and successful year for foreign investment in Hong Kong," he said.

InvestHK expands services to mainland

Invest Hong Kong had expanded its services to enterprises in the Chinese mainland and developed multifaceted relations with mainland in 2002, said its Director-general Mike Rowse here Monday.

The government department which is responsible for investment promotion created in 2002 a Mainland Team and three Invest Promotion Units to target mainland firms in the Yangtze River Delta, Pearl River Delta, Beijing and Tianjin.

In 2002, it also co-organized two mainland private enterprises delegations to Hong Kong with the Ministry of Foreign Trade and Economic Cooperation and held investment promotion seminars in Jinan, Chengdu and Nanjing.

"While foreign investors of all sizes consider Hong Kong as a strategic partner for accessing the mainland market, mainland private enterprises regard the territory as a springboard to go international," said Rowse.

InvestHK and the Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality jointly held a seminar on "Hong Kong - Guangzhou Investment Environment" in Tokyo in September 2002 which is a great success, attracting more than 160 senior representatives from over 100 Japanese companies.

Rowse said InvestHK sees great opportunities to cooperate with its mainland counterparts in promoting the advantages of Hong Kong and the mainland, especially the Pearl River Delta, as an investment destination following China's accession to the World Trade Organization.

He said a similar seminar on "Hong Kong - Shenzhen Investment Environment" will be held in cooperation with the Shenzhen Municipality in San Francisco in April 2003.

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