In 2006, trade and economy in mainland and HK, Macao developed fast and the cooperation gained new progress. In Jan-Nov, 2006, HK and Macao trade with mainland reached US$151.57 billion, out of which export was US$141.48 billion and import was US$10.09 billion. By the end of Nov 2006, mainland used US$609.17 billion HK and Macao's fund in contract, with US$283.91 billion of actual use, constituted 41.9% to total sum.

1, Trade and economic exchange developed fast between mainland and HK, Macao

1) HK remained 4th trade partner, 3rd export market and 2nd import source of mainland. In Jan-Nov, 2006, trade value between mainland and HK reached US$149.37 billion, up by 24%. Out of which export to HK was US$139.51 billion, up by 27.6% and import from HK was US$9.86 billion, drop by 11.6%. Trade surplus of mainland to HK hit US$129.64 billion, up by 32.1%.

2) HK's investment in mainland kept double digit rise. According to MOFCOM's statistics, mainland actually used US$17.5 billion of HK fund in Jan-Nov, 2006, up by 14.1% year-on-year.

3) HK is the largest overseas investment destination of mainland. By the end of 2005, mainland set up 2,500 non-financial enterprises in HK with US$36.5 billion investment storage, which constituted 63.8% of mainland's overseas direct investment storage. In Jan-Sep, 2006, there were 174 Chinese funded enterprises set up in HK with US$3.3 billion direct investment, which constituted 28% of total overseas direct non-financial investment in the same period.

4) Enterprises in mainland listed in HK with enthusiasm. There were totaling 32 enterprises in mainland listed in HK exchange in 2006. Industrial and Commercial Bank of China successfully listed in HK and Shanghai at the same time, which raised fund exceeded US$15.6 billion in HK breaking the largest fund raising record in the world. By the end of 2006, there were totaling 360 mainland's enterprises listed in HK, with 6,017 billion HK dollars of market value, which constituted 48% of total value.

5) Mainland remained the biggest trade partner of Macao. Import and export value between mainland and Macao reached US$2.2 billion in Jan-Nov, 2006, up by 31.9%. Out of which import from Macao was US$230 million, drop by 1.3% year-on-year.

2, interaction in trade and economic cooperation on the increase between mainland and HK, Macao

1) To fully implement CEPA, Supplement Agreement 3 was signed to push further opening in mainland's service trade to HK and Macao. Mainland signed Supplement Agreement 3 of CEPA with HK and Macao respectively. According to the agreements, starting from Jan1, 2007, mainland shall further undertake 15 specific opening measures to HK in 9 fields of law and exposition (shall undertake 13 specific measures to Macao in 8 fields).

2) Forum on Trade and Economic Cooperation and Development between Mainland and HK and Macao was successfully held. Approved by Central Committee, MOFCOM and government of HK Special Administrative Region jointly sponsored the Forum in HK on Jun 29, 2006. The Forum was a significant activity with the same political and economic meanings held by mainland, HK and Macao since the return of the two regions, as well as took the pioneering role in holding big trade and economic exchange activity.

3) 2nd ministerial meeting of Forum on Trade and Economic Cooperation between China and Portuguese-speaking Countries was held in Macao in Sep 2006. Ministers in charge of trade and economic affairs in China and 7 Portuguese-speaking countries attended the meeting. Guiding Framework of Trade and Economic Cooperation was signed which made out program on the cooperation in 2007-2009. The Forum gave prominence to HK and Macao for they played as trade and economic platform and bridge in enhancing understanding between China and 7 Portuguese-speaking countries and pushing development of trade and economic relations.

Editor: Yan