With booming Guangdong as a neighbour, Hong Kong will see more business action from France, said Hong Kong Special Administrative Region Chief Executive Donald Tsang.

Attending the Hong Kong-Guangdong Business Conference in Paris, the Tsang-led Hong Kong delegation aims to update business leaders in Europe on recent developments in the city, particularly its closer economic ties with the mainland.

"We would particularly like to draw investors' attention to the new opportunities arising in the Pan-Pearl River Delta (PPRD), which is one of the largest regional economies in the Asia Pacific region," Tsang said.

PPRD comprises eight provinces and one autonomous region (Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou and Yunnan) and two special administrative regions (Hong Kong and Macao).

Covering one-fifth of China's land and inhabited by 460 million people, about one third of the country's population, the regional alliance is led by Hong Kong and Guangdong.

Hong Kong and Guangdong have distinct but complementary advantages, said Tsang. Guangdong Province is strong in manufacturing, while Hong Kong's major assets are in its international financial connection and expertise.

"By working together, we can leverage each other's strengths to foster economic development in the region," he said.

Hong Kong, with its rule of law, clean governance, low tax regime and an expatriate-friendly environment, has continued to attract international companies as well as mainland enterprises seeking global exposure.

Hong Kong is home to more than 3,800 regional headquarters and regional offices of companies incorporated outside Hong Kong. More than 3,200 of the companies are responsible for operations and businesses on the mainland.

There are 570 French companies in Hong Kong, including 170 using Hong Kong as their regional base of operation.

"As the leading strategic entry point for businesses seeking to establish themselves in Asia, Hong Kong is a logical place to manage Asian operations," Tsang said.

The French companies are active in a wide variety of fields. Most are in the service sector, including banking, insurance and communications. Luxury goods, not surprisingly, have a strong presence, as do fashion and cosmetics.

French companies also lead in design and public works. Construction firm Dragages, part of Bouygues Group, is the major private sector partner in Asia-World Expo, Hong Kong's world-class exhibition and event venue next to its Chek Lap Kok international airport.

But the French influence is not limited to the business field.

Hong Kong hosts about 6,000 French, the largest French community in Asia. As early as 160 years ago, French had built the former French Mission Building, now Hong Kong's Court of Final Appeal.

French wine and foods are highly popular, with many of the city's top-grade restaurants serving French cuisine.

Meanwhile, the French scientific and academic presence in Hong Kong has been expanding rapidly. Collaborations include several inter-university agreements and the France/Hong Kong Joint Research Scheme.

This is the fourth consecutive year for Hong Kong and Guangdong to jointly hold investment promotion events. Events similar to the Hong Kong-Guangdong Business Forum in Paris have been staged in Tokyo, Seoul, London, Vancouver and San Francisco. And each promotion has attracted an overwhelming response, Tsang said.

"We expect many more firms from France, including small and medium-sized companies, will want to be close to the action. They will join the thousands of international companies involved in the China trade of establishing 'beachheads' in Hong Kong," he said.

Editor: Yan