About 10 percent of Hong Kong-based French companies are implementing CEPA-related regulations and they are expected to benefit from CEPA soon, said Bertrand Michaud, president of the French Chamber of Commerce and Industry in Hong Kong on Thursday (Jan 8th).

He said in an exclusive interview with Xinhua that though the Chinese mainland/Hong Kong Closer Economic Partnership Arrangement (CEPA) is more like a symbol to most of the French companies in Hong Kong than a practical benefit at the present stage, the closer relations between Hong Kong and the Chinese mainland will surely benefit Hong Kong-based French companies.

He explained that most of French companies manufacture their products in France or some other places out of Hong Kong, so they could not enjoy CEPA benefit at present.

He said one of the major tasks of his chamber is to promote relations with both Hong Kong and the Chinese mainland.

He said he was invited to the government headquarters, right after this interview, to have a knowledge of the outline of the Policy Address for 2004 delivered by Hong Kong Chief Executive Tung Chee Hwa.

He said he has learned something about the annual Policy Address and he thought some of the contents are "very encouraging." He believed that Hong Kong's economic recovery will be on a more rapid track this year.

Now, over 470 French companies registered in Hong Kong and the chamber's over 430 members employ a total of over 30,000 local staff. In the past four months, around 15 French ventures started their businesses in Hong Kong. And Michaud expected more would come in this year.

He said more French ventures, which have already opened their regional headquarters in Hong Kong, are expected to establish their China head offices for expanding the market in the Chinese mainland this year.

Michaud, also managing director of the Asia Pacific region of Hermes Limited, said his company has just opened a China head office in Shanghai and is ready to open a new store in Guangzhou, the third one in the Chinese mainland, next week. The other two are located in Beijing and Shanghai.

He said his company also plans to open a store in northeast China's coastal city of Dalian.

He said his company's business in the Chinese mainland is really good and Beijing will see the second Hermes store next year.     

Michaud claimed that Hong Kong is really a good place for business and for foreign companies to establish regional headquarters.

Concerning the sales volume in 7 Hermes' stores in Hong Kong, he said though the business was affected during the SARS outbreak in the first half of 2003, the overall mood and sale is good.

Describing the sales volume of the seven stores in the fourth quarter of 2003, he replaced the word of "good" with "excellent." He said the sales volume in December was a record high, compared with that of the same period in the past 20 years.

Betrand Michaud has been on his Hermes post since 1998 and he is also a Foreign Trade Advisor of France.

Editor: Wing