August 17, 2011

Chief Executive Donald Tsang

Let me thank the Vice-Premier and the delegation for joining today's forum, fully demonstrating the Central Government's support and care for the Hong Kong Special Administrative Region. On behalf of the SAR, I would like to extend our warmest welcome to the Vice-Premier and the delegation. 
 
The forum today focuses on the National 12th Five-Year Plan and the development of economic, trade and financial co-operation between the Mainland and Hong Kong. And the name of the forum, "Sharing Opportunities for Common Prosperity" highlights the interactive, mutually beneficial and complementary relations between the Hong Kong SAR and the Mainland under the National 12th Five-Year Plan.
 
Under the concept of ‘one country, two systems’, Hong Kong enjoys many advantages as a special administrative region of the People's Republic of China after our reunification with the country.
 
Our resilient financial system, simple tax regime, free foreign exchange, robust judiciary and regulatory systems, transparent and efficient market operation, and an elite pool of talents have all helped Hong Kong develop into an international financial, trade and shipping centre of today.
 
Helping the Mainland modernise
As regards to our relationship with the Mainland, we have been providing funds, skills, experience and talent for our country's modernisation and development over the past 30 years.
 
As at the end of June 2011, accumulative realised investment from Hong Kong had reached US$492 billion, representing 44% of the country's total investment from the outside.
 
Hong Kong is also the gateway for the Mainland to "go global".  Half of the country's external direct investment was made in Hong Kong or other regions in the world through Hong Kong.
 
As an international financial, trade and shipping centre, Hong Kong benefits from its close ties to the motherland. As at the end of July, 616 Mainland corporations were listed in Hong Kong, representing 42% of the total number of our listed companies and 55% of the total market capitalisation.
 
Co-operation key
While Hong Kong is an important fund-raising platform and international trade window for Mainland businesses, the Mainland is our biggest trade partner. According to Mainland statistics, the import and export trade between Hong Kong and the Mainland exceeded US$230 billion in 2010.
 
Through co-operation between the two places, Hong Kong continues to contribute to the rapid development of the country while thriving in all areas.
Our close ties with the motherland, the ‘One Country, Two Systems’, and the rapid development of our country together form the unique advantages of Hong Kong. This year, we are most excited to see a dedicated chapter on Hong Kong and Macau in the National 12th Five-Year Plan, which signifies the country's resolve to maintain Hong Kong's prosperity, stability and further development.
 
The dedicated chapter highlights the Central Government's support to Hong Kong in various aspects.
 
First, the country's support in consolidating and enhancing our competitive advantages, including our position as an international financial, trade and shipping centre, and support to our development as an international asset management centre and an offshore renminbi business centre, increasing our impact on a global scale.
 
Renminbi business advances
With the staunch support of the People's Bank of China and other Mainland ministries concerned, our offshore renminbi business has made good progress since last year. In the first half of 2011, settlement of trade deals in renminbi conducted through Hong Kong banks reached over RMB800 billion, or around 80% of the total renminbi trade settlement in the Mainland.
 
The development of our renminbi bond market is equally encouraging. In the first seven months of this year, a total of around RMB70 billion of bonds, including RMB20 billion of sovereign debt, have been issued by entities around the world, already 95% more than the issuance for the whole of last year.
 
All of this tells us that Hong Kong is taking shape as a premier offshore renminbi business centre and serves as an important platform for the development of renminbi business around the globe.
 
Second, the country's support in nurturing and helping Hong Kong’s emerging industries to extend their scope of co-operation and services in the Mainland. This will help us further improve the structure of our industries.
 
Financial co-operation zone
Third, the deepening of economic co-operation between the Mainland, Hong Kong and Macau. This includes continuing the implementation of the Mainland and Hong Kong Closer Economic Partnership Arrangement, carrying out the Framework Agreement on Hong Kong-Guangdong Co-operation to establish a financial co-operation zone in the Pearl River Delta region with Hong Kong’s financial system taking the lead, and encouraging Guangdong services industry to open up to Hong Kong through "early and pilot implementation" for gradual expansion to other places as well.
 
These measures help Hong Kong expand its economic hinterland, promote further integration of the services industries across the boundary, and enhance the overall competitiveness of the region.
 
In addition to specifying the position of Hong Kong in the strategic development of the nation, the chapter dedicated to Hong Kong and Macau also points out the direction of co-operation between Hong Kong and the Mainland in the 12th Five-Year period, which caters for the needs of the current situation as well as the future development of Hong Kong.
 
With the blueprint of the National 12th Five-Year Plan, the country aims to expedite the transition into a new mode of economic development by boosting internal consumption, promoting services industry and emerging industries, and encouraging urbanisation, innovation and technological advances under an extended "go global" strategy. All of these policies will bring us immense opportunities.
 
Services industry to be bolstered
Take the development of the services industry as an example. With our profound experience and knowledge in the area, we are well-positioned to promote the development of the services industry in the Mainland. The National 12th Five-Year Plan aims to enhance the importance and standard of the services industry. 
 
Mainland counterparts should not only work on the quantity, but also strive to raise the quality to meet the requirements of the international markets. In this respect, the services industry in Hong Kong is presented with unprecedented opportunities.
 
Our entrepreneurial, can-do spirit is our key to success. We must make the best of these opportunities to create a favourable environment for our services industry to enter the huge Mainland market.
 
Hong Kong is blessed to enjoy the advantages of One Country, Two Systems, our geographical location as China's southern door, the support of our Mainland compatriots and our passionate, hard-working people who give their best for Hong Kong. All these advantages will be further strengthened under the direction of the National 12th Five-Year Plan.
 
The forum today gives us a better understanding of the opportunities brought about by the National 12th Five-Year Plan in economic, trade and financial co-operation between the Mainland and Hong Kong. By making the best of our interactive, mutually beneficial and complementary relations, I am sure we can create a common prosperity and a brighter future for all our people in the years to come.
 
This is a translation of the speech by Chief Executive Donald Tsang at the Forum on the National 12th Five-Year Plan & Economic, Trade & Financial Co-operation & Development Between the Mainland & Hong Kong at the Hong Kong Convention & Exhibition Centre.