Copyright scmp
Hong Kong has attracted about 500 local and mainland Chinese enterprises at its first large-scale major promotional event across the border through a newly established task force dedicated to helping businesses expand overseas, the city’s trade promoter has said. Officials went all out to promote Hong Kong’s role as a global connector in Shanghai this week, including at a conference on Thursday titled “The Ideal Platform for Mainland Enterprises in Going Global Promotion Conference”. The event was organised by the government and the Trade Development Council. The conference took place alongside Hong Kong’s participation in the world’s largest import trade show, the China International Import Expo. “Hong Kong’s role as a super connector is getting more important… and [helping enterprises] go global is extremely important for the country, which connects them with the world,” council chairman Frederick Ma Si-hang said on the sidelines of the conference. According to Ma, there were more than 500 firms from both Hong Kong and Shanghai interested in using the city as a platform to invest overseas and attract foreign capital and technology. He added that the country’s products were “very mature and world-class”, with Hong Kong able to act as a “super-connector” to facilitate bilateral international cooperation and trade. The council’s executive director, Sophia Chong Suk-fan, said that the city had an advantage in strong professional services, including those in the legal and accounting sectors, which were needed to help enterprises set up operations. She added that the council was also actively promoting opportunities in the Middle East market. In his latest policy address, Chief Executive John Lee Ka-chiu said that the government would establish a Task Force on Supporting Mainland Enterprises in Going Global - or GoGlobal Task Force - to encourage firms across the border to use Hong Kong as a platform for expanding overseas. It would offer one-stop, tailor-made professional services to mainland Chinese enterprises exploring new and emerging overseas markets. Underlining the need for the task force, Lee said at the conference that mainland enterprises expanding globally required significant capital and robust professional services support. Hong Kong could serve as an international commercial platform where mainland products and technology could be effectively matched with international standards and partners, he added. The task force is part of Hong Kong’s efforts to fully integrate into the national development by capitalising on strategies for the Greater Bay Area development and China’s Belt and Road Initiative. Secretary for Commerce and Economic Development Algernon Yau Ying-wah, who is part of the Hong Kong delegation to Shanghai and steers the task force, said at the conference that mainland enterprises faced several key challenges when “going global”. They included complexities in cross-border fund management, difficulties in recruiting and retaining international talent, and a knowledge gap regarding overseas laws, regulations, and compliance requirements. Yau added that given Hong Kong’s unique alignment with international markets and its deep understanding of overseas market systems, the city would be an ideal partner for mainland enterprises seeking to expand overseas. Commenting on ongoing geopolitical strains between China and the United States, Ma said both countries had reached certain agreements that gave both sides “breathing space”, but tensions would still linger in the long term. “The issue will persist, as the US will attempt to impede China’s development progress, but such efforts will be unsuccessful, as China has developed very well,” he said. Nonetheless, Ma admitted that the city would need to make significant changes to its global trade strategy as a result. Specifically, he expected stronger bilateral trade with the Middle East and South America, while commerce with North America might decline. Despite this, he expected that overall trade volume would maintain steady growth. Ma revealed that he would lead delegations to Europe, including the United Kingdom and Italy, later this month to promote Hong Kong’s unique advantages and business opportunities. Before Lee returned to the city on Thursday evening, he met with the Secretary of the Shanghai Municipal Committee of the Communist Party of China Chen Jining and his aides, and said both cities complemented each other in a national mission of developing regional economies. “Hong Kong and Shanghai are both important windows for China’s opening up to the outside world, each with its own advantages and strong complementarity,” Lee said.
