PARIS, France: Hong Kong is one of the reasons for foreign companies to be doing business in Guangdong, Chief Executive Donald Tsang said at the Hong Kong-Guangdong Business Conference in Paris yesterday.

"You should go to Guangdong because you can have Hong Kong as (your) neighbour," he said after Guangdong Governor Huang Huahua had answered a question on the reasons for firms interested in China to choose Guangdong as their destination.

During the question-and-answer session at the conference, Huang listed Guangdong's well-developed industries, services and infrastructure, huge market, efficient government and its maturing system to protect intellectual property rights as the South China province's advantages.

Tsang took the opportunity to stress Hong Kong's complementary strengths to Guangdong. Hong Kong can provide back-up services and a familiar legal system for companies operating in Guangdong, Tsang said.

Also, "you'll have many friends in Hong Kong," he said, referring to the 6,000 French residents living in Hong Kong that made them the largest French community in Asia.

"You can set up your headquarters in Hong Kong and branch out to the mainland... To me, this is a proven winning recipe," he said.

The Hong Kong-Guangdong Business Conference in Paris was the first time the neighbours had held a joint investment promotion in France. It was aimed at furthering the cooperation with Europe.

The promotion is the largest of its kind from China, according to the Chinese ambassador to France, Zhao Jinjun.

The conference aroused great interest from across the French business circle, which was reflected in the packed venue of Le Palais des Congres de Paris. With more than 2,000 French company managers showing up at the meeting, plus the 300-strong Chinese delegation, the conference room was full to capacity. Many had to watch the video on an adjacent exhibition floor to follow the proceedings, while others preferred to stand in the aisles.

"This is a great opportunity to gather information, gain understanding and create contacts," said France-Mireille Mondy, a trading consultant.

The forecast-exceeding participation is a testimony to "a promising future", said Claude Pernes, president of Ile-de-France region's Mayors' Association.

Huang and Tsang both delivered keynote speeches, informing the French businessmen about the latest developments in Guangdong and Hong Kong.

To an enthralled audience, Huang said that Guangdong had reached a GDP of US$260 billion, accounting for one-ninth of the nation's total. The province's overall per capita GDP is over US$2,882, while the average in the more developed Pearl River Delta region has surpassed US$4,800.

Editor: Yan