HK an 'irreplaceable partner' for mainland companies: Officials
Updated: 2012-08-23 06:42
By Sophie He(HK Edition)
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CE Leung Chun-ying (front left) and other VIP guests at the forum. Sophie He / China Daily |
Hong Kong enterprises are playing a greater role in helping mainland companies' "going out" drive by teaming up with them in the process, according to senior mainland and Hong Kong government officials.
Wang Yanzhi, Director of the State Administration of Foreign Exchange Entrusted Loan Office, told the forum the mainland's "going out" drive has been a national strategy since 2002, and mainland enterprises have been undergoing rapid development since 2005.
"Along with the growth in the overall economic strength of our country and the changes in the global economic situation, there is more room for collaboration between mainland and Hong Kong enterprises," he said.
The director pointed out that under the ninth supplement to the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the mainland, eligible Hong Kong financial institutions are encouraged to establish joint-venture securities, fund-management and futures companies on the mainland. This will help Hong Kong companies identify and meet the demands of mainland enterprises and jointly promote the "going out" strategy.
For mainland and Hong Kong companies to "go out" together is a new task and a lot of issues and details have yet to be explored, Wang said.
But he stressed that Hong Kong is an irreplaceable channel for mainland enterprises in the process as the mainland cannot find another suitable partner who can understand the complexity of China's economic development while meeting the requirements of professionalism.
"Hong Kong is crucial to the mainland's future economic development. The city has unlimited potential and its special position (for the country) cannot be replaced."
Echoing Wang's views, Benjamin Chau Kai-leung, deputy executive director of the Hong Kong Trade Development Council (HKTDC), said 56 percent of the mainland's overseas investments flowed into Hong Kong or other countries through the city every year. This, he said, is self-evident that Hong Kong is an important platform for mainland companies in "going out".
"Professional services companies in Hong Kong enjoy the wealth of knowledge and experience. Hong Kong firms are also more familiar with the international mode of operation and they have the network of international trade," Chau noted, adding that when mainland enterprises decide to "go out", the resources owned by Hong Kong companies can be very helpful.
He said Hong Kong enterprises can offer professional advice on financing, due diligence, team integration and brand management for mainland companies in the development of overseas M&As. "Hong Kong's (professional services) companies are playing an intermediary's role between mainland and foreign enterprises."
Chau added that one of the HKTDC's priorities this year is to promote Hong Kong's professional services platform for mainland enterprises intending to "go out". On the other hand, the council will help Hong Kong's services in seizing such opportunities.
sophiehe@chinadailyhk.com
(HK Edition 08/23/2012 page2)