Economic integration between Shenzhen and Hong Kong will accelerate with the signing of the Closer Economic Partnership Arrangement (CEPA), a top Shenzhen official said yesterday.

The free trade pact between the mainland and Hong Kong provides more co-operation opportunities to both cities, said Chen Yingchun, vice mayor of Shenzhen,at a seminar.

The finance and tourism sectors, in particular, are areas with enormous co-operation opportunities, he said.

The trade pact relaxes the minimum-asset requirement for the entry of Hong Kong banks to the mainland; and Chen believes Shenzhen would be their first choice to test the waters.

Under the agreement, citizens in Guangdong Province will be allowed to visit Hong Kong individually instead of having to join tour groups - which would lead to an expected influx of Guangdong travellers.

Shenzhen and Hong Kong can also work more together in the logistics industry, such as airports and seaport terminals.

Shenzhen will further improve cross-border facilities to enhance traffic of people and goods. Talks have started between related authorities on the issue, he said.

Chen vowed to improve Shenzhen's overall environment, such as keeping the city clean, reducing traffic congestion, and improving public security, to attract more Hong Kong and foreign investors.

Since the opening-up of the mainland in 1979, Hong Kong has invested a total of US$27.47 billion in 25,604 projects in Shenzhen, accounting for 63.5 per cent of the total overseas-investment. The total value of imports and exports between Shenzhen and Hong Kong was US$20 billion last year.

Shenzhen yesterday also announced that the Fifth Session of China Hi-Tech Fair would be held in the city from October 12 to 17.

Editor: Liao Ming