With the economic recession deepening worldwide, businesses of the Hong Kong Special Administrative Region (HKSAR) are increasingly reliant upon the speedily developing Chinese mainland economy for new opportunities.
Hong Kong should increasingly be developed into a platform capable of exchange on behalf of the Chinese mainland with Japan and South East Asia, Wang Zhan, director of the Shanghai municipal government development research center said.
Wang has also invited Hong Kong to work with Shanghai in developing the Yangtze River Delta region and the Northwest of the mainland.
With Moody's vice president Thomas Byrne having just announced the maintaining of credit rating of China at A3 with a stable outlook, he said he believes China has a staunch commitment to continuous economic reform.
China is already considered the most attractive country to foreign investors in the past few years, he added.
In the face of the huge opportunities right at its doorstep, how is Hong Kong repositioning in capitalizing on the economic development?
On Friday, HKSAR Financial Secretary Antony Leung remarked at the APEC Business Advisory Council Luncheon, "In Hong Kong, there are two things we can and must do: First, we can concentrate our efforts on areas where we already have an edge and that also have good growth potential.
"Secondly, we must nurture much closer links with our hinterland, the Pearl River Delta, which is a natural fit for Hong Kong."
Already the Hong Kong SAR is increasingly acting as a window for China to access the international market and promoting economic and technological exchanges between the mainland and the overseas market.
For example, a recent business conference held here resulted in the signing of 51 deals worth US$217.67 million of metal ware, bamboo products and leather goods. Of that amount, US$163.2 million are foreign investments.
Hong Kong Banker David Li Kwok Po said with the mainland economy fluttering its wings, he could not wait but jump early on the investment bandwagon on the mainland to pre-empt foreign competition.
Being the chairman of the Hong Kong-based Bank of Asia, Li said Hong Kong's economy will start to turn around later this year, estimating the annual average GDP for the Hong Kong SAR to be a positive 1 percent due to an increasing mainland demand for Hong Kong 's services. The bank already has plans on hand to expand its retail banking business in Guangzhou.
With more mainland tourists visiting Hong Kong for consumption, Hong Kong is being directly benefited in the midst of the current economic difficulties from its tourism receipts.
At a time when Hong Kong is at a crossroads and repositioning itself, many secondary school students, who have completed their Form 5 education and obtained their results as of late, have expressed wishes to further their studies on the mainland to "glean an early insight" on economic development there. Many said they are applying for the one-year foundation course run by the universities in the hope of being admitted into one of their bachelor's degree courses in due course.
Eddie Ng, chairman of the International Committee of the Hong Kong Institute of Human Resources Management, said graduates of mainland universities are increasingly sought after by Hong Kong companies who need the knowledge of economics in the Chinese context, particularly that of the Pearl River Delta.
While many Hong Kong students traditionally go to English-speaking countries in the past, they are now turning to the mainland.
(Xinhua News Agency August 10, 2002)
