Mainland eager for more Hong Kong investments

Keen on investments in service sectors and emerging industries.

Wang Chao, vice minister of commerce, said the service sector is one of the most promising industries in the mainland. According to him, the central government's plan to boost the service sector offers Hong Kong great opportunities to further tap the mainland market.

He said Hong Kong's service providers should leverage their expertise to capitalize on opportunities arising from the mainland's 12th five-year economic plan aimed at domestic consumption and more sustainable growth. He hopes companies from both sides will have more cooperation opportunities in the future.

Wang noted that as a highly internationalized city, Hong Kong has advantages in finance, trade, logistics and shipping, while the labor-abundant mainland boasts vast market and promising economic growth prospects.

"The mainland remains the preferred investment destination for multinationals," Wang said.

Hong Kong firms enjoy greater and easier access to the mainland market for various service sectors including tourism, securities and banking services due to the Mainland and Hong Kong Closer Economic Partnership Arrangement and its nine supplementary agreements.

As the mainland service trade will be basically liberalized to Hong Kong businesses by the end of the 12th Five-Year Plan period (2011-15), great investment opportunities will arise for Hong Kong enterprises, said Wang.

He pledged that the mainland will continue to cut red tape, reduce administrative barriers to investment and crack down on intellectual property right infringement in a bid to lure more investment.

Hong Kong overtook Japan to become the mainland's second largest trading partner in 2012. Bilateral trade amounted to US$341.5 billion or 8.8% of the mainland's total external trade in 2012.

Total exports from the Chinese mainland to Hong Kong stood at US$323.5 billion, making Hong Kong China’s second largest export market after the USA.