China has achieved sustained economic development during these two decades after the opening-up and reform policy, who has acted as a key in global economic system. Lots of excellent domestic companies have completed their original accumulation in initial stage and now they have good demands and enough capital for expanding overseas market. With perfect community service framework, free information and fund circulation, Hong Kong, the so-called Oriental Pearl, is undoubtedly a significant bridge and platform for domestic companies to tap into international market.

   Department of Foreign Trade and Economic Cooperation of Guangdong Province（GDDOFTEC）and Hong Kong Economic and Trade Office in Guangdong recently hold a symposium on Guangdong’s investment in Hong Kong. Representatives from economic and trade departments of the province, chiefs of chambers of commerce and association, as well as representatives from companies have a good discussion on promote domestic investment in Hong Kong. Making a detailed introduction to its free service items, representatives of Hong Kong Economic and Trade Office offered comprehensive guidance for domestic investors.

Stable growth

   Zhu Zenan, vice director-general of GDDOFTEC noted in the symposium that, during the first five months of this year, more 17 Guangdong companies made first investment in Hong Kong, coming with total amount of investment of 160 million US dollar, which makes up 40 percent of Guangdong’s total investment abroad.

   Guangdong and Hong Kong are closely related in business and trade. According to Ministry of Commerce’s statistic in the end of 2006, there were 2,793 domestic companies that had been approved or ready for recording to invest in Hong Kong, contributing investment amount as 8.752 billion US dollar, growing respectively by 11.5 percent and 39.8 percent against the previous year.

   Domestic investment in Hong Kong gradually shows following features. Firstly, with greater amount and growth, investment covers trading, manufacture, logistics, research and development and financing. Secondly, Hong Kong is gradually considered the first stop for domestic companies to expand their undertaking. Business and trade service in Hong Kong is then used to advance brand competitiveness in global market. Thirdly, these investors’ branches in Hong Kong are generally found to have good economic benefit. Fourthly, investment of private-owned companies trend to gear up in Hong Kong. By the end of 2006, there had been 172 private-owned companies sought investment in Hong Kong, nearly 80 out of them are from Guangdong.

   With general adoption of the market principle, Hong Kong is highly internationalized. In view of this, investors there are able to get lots of experience and enhance their capability in global market. In fact, Hong Kong government presents great support in this aspect, which offers lots of free service. Companies would be advanced to higher level.

Hong Kong’s office in Guangdong providing free service

   At present, Hong Kong government has four offices in domestic China, situated in Beijing, Shanghai, Guangzhou and Chengdu, said Lo, executive of investment promotion of HK’s Economic and Trade Office in Guangzhou.

   Guangzhou’s office was registered in October 2002. It is relatively earlier due to the close relationship of Hong Kong and the Pearl River Delta. Within years after its founding, it has made remarkable achievement in the aspects of cementing trading relation between Guangdong and Hong Kong, promoting domestic investment in Hong Kong and providing strong support for Hong Kong merchants. In order to propel furthermore the communication between Hong Kong and domestic provinces and cities, service of the office had been expanded to cover Pan-Pearl River Delta provinces, namely, Guangdong, Guangxi, Jiangxi, Fujian and Hainan.

   It is known that, the office’s investment promotion service is characterized by free service, confidential business topic and no investment restriction.

   The whole service scope is divided into prophase, metaphase and anaphase. The first stage features aids on making correct investment decision. Latest information on economic environment and investment status would be offered, as well as related regulation and laws.

   In the mid of investment, investors are helped to seek cooperative partners in Hong Kong. At the same time, practical service would be ready for them, such as discussion with governmental department and chambers of commerce. Accountant firms, lawyer’s firms, business registration institute would be introduce to investors. PR event and media support will be carried out.