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Hong Kong helps free trade zone boost opening-up

Updated: 2017-11-14 06:17

By Yuan Shenggao(HK Edition)

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The Shaanxi Liaison Unit of the Hong Kong Special Administrative Region government has witnessed the province improve its business environment and promote the gathering and optimization of technology, capital and human resources, said a senior Hong Kong official.

Pamela Lam, director of the Hong Kong Economic and Trade Office in Chengdu, which is in charge of the new liaison office in Shaanxi, made the remarks at a briefing meeting on the China (Shaanxi) Pilot Free Trade Zone in late October in Xi'an, capital of Shaanxi.

Since the free trade zone opened in April, the province in Northwest China has increased its economic and cultural exchanges with countries and regions involved in the Belt and Road Initiative.

The initiative, proposed by China in 2013, aims to increase international exchanges via the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

Hong Kong helps free trade zone boost opening-up

Zhao Runmin, head of the Shaanxi Provincial Department of Commerce, said the free trade zone's operation dovetails with the province's aspirations to expand its opening-up and further reforms.

The zone will enhance Xi'an's international cooperation as the western gateway city, and provide a reference for the country's new round of opening-up, Zhao said.

Government data show more than 6,100 new companies were established in China (Shaanxi) Pilot Free Trade Zone from April to mid-October, including 70 overseas-funded ones.

The total newly registered capital of companies based in the zone has topped 185 billion yuan ($27.8 billion), including more than $364 million from overseas investors.

As the only free trade zone in Northwest China, it prioritizes collaborations in technology, education, culture, tourism and healthcare, and looks to attract globally recognized companies and leading teams, local officials said.

Lam said the Chinese mainland and Hong Kong signed an agreement on close economic and technological partnership in June, which supports Hong Kong's participation in the construction of free trade zones nationwide.

The zones' opening-up will give Hong Kong-invested companies more opportunities in finance, logistics and other professional services, in which Hong Kong-based companies are more competitive, she noted.

Hong Kong is the world's largest offshore center of renminbi settlement business, as well as a key hub of legal services and dispute resolving in the Asia-Pacific region.

It can offer high-level financial, legal and other professional services, and contribute to the going-global of the businesses in the Shaanxi zone and their efforts in attracting foreign investment, Lam added.

Hong Kong has become one of Shaanxi's top sources of overseas investment, fourth-largest trade partner and major capital market for listed companies.

By the end of May, the number of Hong Kong-funded companies in Xi'an had topped 1,360, involving more than $22.3 billion in total registered capital and enabling Hong Kong to rank No 1 among 70 countries and regions that have invested in the city.

Wei Zengjun, vice-governor of the province, said that the zone has enabled Shaanxi's opening-up and development to take off, positioning it at the forefront nationally in a new round of opening-up.

Expanding opening-up in the financial sector and enhancing innovation in financial systems are key parts of the zone's development, Wei said.

"Shaanxi and Hong Kong will together benefit from the new opportunities brought by the zone."

(HK Edition 11/14/2017 page2)

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