Hong Kong companies in the logistics, distribution, road passenger transport, advertising, travel and telecommunications industries are expected to invest HK$4.2 billion this year to expand their operations on the mainland to take advantage of the Closer Economic Partnership Arrangement (CEPA), a senior government official said.
Speaking at a seminar on Monday, Secretary for Commerce, Industry and Technology John Tsang said that as of the end of February, some 720 Hong Kong firms had received the necessary certifications under CEPA to enter the mainland market under favorable terms.
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Tsang said that through the end of 2004, local companies had increased their investment in the mainland by about HK$2 billion to take advantage of the trade pact, leading to a HK$1.5 billion boost to exports. To support their growth in China, Tsang said, companies in the six services industries added 1,900 jobs in the territory last year.
He estimated that another 7,200 jobs will be created this year, all but 480 of them in Hong Kong.
Tsang also said moves by the central government to simplify the procedures governing mainland company investment in Hong Kong led to 68 mainland firms winning permission to set up operations in Hong Kong in the final four months of last year. The streamlined methods resulted in an investment of as much as US$470 million (HK$3.66 billion), he said.
The government is now asking companies for suggestions on what to include in the third round of CEPA, which could be unveiled in October.
Eden Woon, chief executive of the Hong Kong General Chamber of Commerce, urged the government to help small and medium-sized companies take advantage of CEPA.
He said only about 700 of these firms have applied for certification under CEPA since the trade pact became effective 15 months ago. grace.lam@singtaonewscorp.com
