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China's economic hubs of Hong Kong and Shanghai agreed yesterday to strengthen ties in eight sectors, anticipating larger room for co-operation under a free trade pact between the mainland and the special administrative region.

The eight sectors include: airports, ports and maritime; logistics; the 2010 Shanghai World Expo; tourism and exhibitions; investment and trade; education, health and sports; financial services and exchange of skills.

Hong Kong Chief Executive Tung Chee-hwa and visiting Shanghai Mayor Han Zheng jointly made the announcement yesterday after the Hong Kong-Shanghai Economic and Trade Co-operation Conference.

Airport authorities of Hong Kong and Shanghai signed a letter of intent yesterday to promote closer teamwork.

The letter calls for sharing of experience in airport management in safety and security, airport flow, airport environment, airport facility planning and airport franchise business.

It also states the two airports will explore co-operation in airport business management, including retailing, food and beverages and advertising.

They will, in conjunction with other mainland airport hubs, build a platform for the transfer of experience to promote the modernization of airport management throughout the country.

Describing Hong Kong-Shanghai economic co-operation as mutually beneficial, Tung said room for such efforts is set to expand under the mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA).

Yesterday's talks, which featured a greater role for government in promoting economic ties, produced new concepts and mechanism for comprehensive partnership between the two places, Han said.

Tung said besides the benefits for the two places, closer bonds between Hong Kong and Shanghai should help promote co-operation between the Pearl River Delta and the Yangtze River Delta and make a significant contribution to the country's economic development.

The two cities also agreed to set up a new mechanism for partnership, which will be led by Tung and Han and supervised by Hong Kong's Financial Secretary Henry Tang and Shanghai Vice-Mayor Jiang Sixian.

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