HK Seeks Stronger Economic Ties with Mainland

Hong Kong Chief Executive Donald Tsang Wednesday said the government will strengthen its co- operation with China's mainland in economic development.

When delivering his annual policy address at the Legislative Council on Wednesday, Tsang said Hong Kong will strive to enhance its status as an international center for financial services, trade, shipping and logistics to ensure that the city can better leverage its unique advantages and functions during the National 12th Five-Year Plan.

Besides, Hong Kong is working with Guangdong province to seek to incorporate the most important functions and roles of Hong Kong- Guangdong co-operation into the Five-Year Plan. he added.

The Hong Kong government will work with the Shenzhen authorities to encourage the trades in Hong Kong to seize the opportunities arising from the development of Qianhai in Shenzhen, in which the State Council set clear objectives and directions last August, and to expand the hinterland for Hong Kong's service industries.

Tsang mentioned that strengthening Hong Kong's financial services should be positioned and developed in a way that will increase its contribution to promoting the modernization of the mainland's financial system, particularly the internationalization of the RMB and the increased convertibility of the mainland's capital account in a gradual and orderly manner.

Under the four short-term goals suggested by the Hong Kong government, the city will seek the expansion of channels for enterprises to invest in the mainland the RMB capital raised in the city.

By taking advantage of the development of cross-border trade settlement in RMB, Hong Kong will promote capital flows between banks in Hong Kong and the mainland and attract more foreign enterprises to use Hong Kong's RMB settlement services, Tsang told.

Linkage between products traded on the stock exchanges of Hong Kong and the mainland will be strengthened to seek mutual access for market participants and intermediaries, and expand the channel for capital flows between the two places.

Hong Kong will also try and encourage more mainland, Hong Kong and foreign enterprises to issue RMB bonds in Hong Kong.