Press Release - September 30, 2002

The Financial Secretary of the Hong Kong Special Administrative Region Government, Mr Antony Leung, today (September 30) presented Hong Kong as the best platform for business ventures in the huge market of Mainland China which he described as "one intensely bright spot amid the economic gloom" and which the World Bank had predicted to become the world's second largest trading entity within 20 years.

Despite the financial crisis which forced Asian governments and businesses to strengthen their systems and to re-climb the ladder to growth, Mr Leung said no Asian country was more robust than China with a continuing economic growth consistently at seven to eight per cent a year, a stable currency, a booming manufacturing base and a blossoming domestic market.

He noted that China had been steadily opening up to the outside world for nearly 25 years and its accession to the World Trade Organisation last year had accelerated the process.

Positioning Hong Kong in the new picture, Mr Leung said:"One of the brightest parts of China is the Pearl River Delta. And at the heart of the Delta is Hong Kong. If you decide you want to be where the action is. Hong Kong is the best platform, bar none, for jumping into that market."

Mr Leung was addressing a business luncheon organized by the Hong Kong Economic and Trade Office (Canada), the Hong Kong Canada Business Association and the Canadian Club of Toronto at Metro Toronto Convention Centre on his first official visit to Canada since his appointment as Financial Secretary in May 2001.

Elaborating on Hong Kong's strengths in the new trading environment in the face of some difficulties in the near term, Mr Leung said: "We are still the most important entrepot for China, handling about 30 percent of the Mainland's foreign trade. We are the market of choice for Mainland companies seeking to raise capital, and the service center for a lot of foreign companies doing business in China.

"Nobody knows more about doing business in China than we do. Hong Kong is the largest single source of external investment in the Mainland, with cumulative investment of CDN$290 billion, nearly half of all external investment in the country."

As an open and externally oriented economy, he said Hong Kong was greatly affected by the economic performance of its trading partners. With a GDP growth remaining virtually flat, heavy deflationary pressure and rising unemployment, the economic restructuring taking place in Hong Kong has highlighted the resilience and flexibility of its economy.

"Painful as it is, restructuring is essential to improve our competitiveness," said Mr Leung. "Hong Kong possesses a number of fundamental advantages in China trade �V geographical proximity, cultural and linguistic links, and extensive business networks. But what we need to do is further strengthen those advantages.

"We have already begun work to enhance two-way flows of people, cargo, capital, information and service with the Mainland. We are upgrading and expanding our existing boundary crossings, and building new ones. We are examining new passenger and cargo rail links into the Pearl River Delta and we are connecting our airport by ferry with 20 ports in the Pearl River Delta. China's national highway system will be completed over the next five years, and we'll be linking into that grid."

He also cited the proposed 29-kilometre bridge that would stretch to the western part of Pearl River Delta at a cost of about CDN$ 3 billion as an example of the projects being considered in Hong Kong. "It is too early to say when this project might go ahead. But it gives you an idea of how big the thinking remains in Hong Kong." Mr Leung added.

The Financial Secretary stressed that whatever Hong Kong did and would be doing would be within the framework of 'One Country, Two Systems'.

On what Hong Kong can offer Canadian companies in the new economic environment, Mr Leung told the audience that there were 150 Canadian companies in Hong Kong to take advantage of its free market, pro-business climate and strategic location as a popular choice for regional offices and operations.

Citing the Hong Kong International Airport as an example of Canadian success in Hong Kong , the Financial Secretary said: "Our airport was named the world's best airport last year in a survey by Skytrax Research. Several Canadian companies featured prominently in making that project a reality."

For example, wind-loading analysis for the airport was the responsibility of RWDI, while Delcan, IBI Group, and EIS looked after traffic control and surveillance systems on the bridges and highways leading to it.

"Hong Kong is the world's freest economy, perched on China's doorstep and offering numerous advantages for Canadian companies seeking to do business there," Mr Leung said. "Probably the most important of these advantages is our long tradition of adherence to the rule of law. We have one of the most sophisticated financial centres in the world. We provide a level playing field for business. We allow an unfettered flow of information. We share the language and culture of the Mainland of China."

In addition, Hong Kong hosts helpful organizations like the Chamber of Commerce, the Canadian Trade Commissioner Service and our own Trade Development Council, all of which are dedicated to matching up companies with business opportunities.

"You can see for yourself what we're talking about by joining the Hong Kong-Canada trade mission in early November. The theme of the mission is 'Hong Kong �V Your Fast Track to China' and it will include a visit to Hong Kong-owned factories in the Pearl River Delta," Mr Leung said, adding that Hong Kong had infrastructural projects worth CDN$120 billion going on or in the pipeline and Canadian companies were welcome to bid for these contracts.

Organised jointly by the Hong Kong Economic and Trade Office, the Hong Kong Canada Business Association, the Hong Kong Trade Development Council and the Hong Kong Tourism Board, the trade mission is aimed at any Canadian companies looking for opportunities in Hong Kong and the Mainland of China, particularly companies in the communications and biotech sectors, as well as those in financial services, tourism, entertainment and education. Registration is still open. For enquiries, please call (416) 924-5544.



For more information, please contact:
John Tam, Chief Information Officer of Hong Kong Economic and Trade Office at: (416) 924-5544 or email: [email protected] or Elison Chu, Senior Information Officer, [email protected].

Mr Leung delivered a keynote address at today's business luncheon co-hosted by the Hong Kong Economic and Trade Office (Canada), Hong Kong-Canada Business Association and Canadian Club of Toronto at the Metro Toronto Convention Centre today (September 30). Mr Leung talked about Hong Kong's role in the dramatic transformation now taking place in China, and what Hong Kong can offer Canadian companies in the new economic environment.