An MoU signed recently highlighted how Hong Kong will further play the role of contact point and hub for trade and investment, enhancing cooperation with Guangdong on scientific innovation, youth entrepreneurship and attract more business visits to Greater Bay Area.
On June 15th, the Hong Kong Trade Development Council (HKTDC) and the Department of Commerce of Guangdong held a forum to seize the opportunity presented by the Guangdong-Hong Kong-Macao Greater Bay Area as well as the Belt and Road Initiative.
“The economic development of Hong Kong and the Chinese mainland has been closely linked for years. The “Belt and Road” Initiative and Guangdong-Hong Kong-Macao Greater Bay Area construction will bring new cooperation opportunities for both sides,” said Ms Margaret Fong, the Executive Director of HKTDC.
Scientific and technological innovation will become one of the important factors boosting development of the Greater Bay Area. It can become a world class bay area through its advanced scientific research & technology, traditional industries and international professional services.
As for Hong Kong, it plays an irreplaceable role as the "super connector" between overseas and mainland markets in the Greater Bay Area, thanks to its high degree of internationalization and marketization.
Statistics show that investment from Hong Kong accounts for almost 80% of Guangdong's actual absorption of overseas investment.
In 2017, the province’s actual investment in Hong Kong exceeded 5 billion USD, accounting for nearly 60% of the provincial total, said Mr Zheng Jianrong, Director General of the Guangdong Department of Commerce.
“Through its financial strength, scientific innovation and internationalization, Hong Kong will see development complementary to other cities of the Greater Bay Area,” said Ms Fong.
In detail, Guangdong’s technological innovation, intelligent manufacturing can link with the Hong Kong’s experience in finance, supply chain management, trade of intellectual property to benefit each other and boost the development of Greater Bay Area.
For instance, Hong Kong can provide cross-border funding for enterprises in the area with lower cost. Also, the government has a 2.5 million HKD subsidy for the first-time bond issuers in Hong Kong.
HKTDC will not only attract more overseas companies into the area, but also help Guangdong enterprises to go global and expand their market, added Ms Fong.
She said, priority will ge given to markets along the Belt and Road, especially for southeast Asia.
As regards Guangdong, the province will establish new platforms for future cooperation with Hong Kong and Macao in trade facilitation, the sharing of scientific research equipment, overseas infrastructure construction, etc.
Background:
The scope of Guangdong-Hong Kong-Macao Greater Bay Area.
Since the reform and opening-up policy was implemented in China in 1978, Hong Kong and Guangdong have set up a model of economic cooperation of having stores in front (Hong Kong) and factories behind (Pearl River Delta cities). Light industrial products made in PRD cities were sold on the overseas market through HK.
Later, the cooperation became closer when the Government of the Hong Kong SAR and the Central Government signed the Closer Economic Partnership Arrangement (CEPA) in 2003. It is a free trade agreement according to which qualifying products, companies and residents of Hong Kong enjoy preferential access to the mainland Chinese market.
Since 2011, HKTDC has organized overseas visits for mainland firms and HK enterprises for investment and business matching. It is said that emerging markets along the Belt and Road such as the ASEAN countries will become top areas pulling in investment.
Reported by Will
Edited by Simon
