BANGKOK: Hong Kong keeps enjoying independent judiciary, political stability, low and simple tax regime, free market principles and clean business environment under the “one country, two systems” principle, and remains as Asia’s business capital due to ties with China’s mainland, a senior Hong Kong trade official said here on Wednesday, the Xinhua news reports.
Fong Ngai, Director of Singapore-based Hong Kong Economic and Trade Office (HKETO) made the remarks at the Presidents’ Luncheon of the Joint Foreign Chambers of Commerce Thailand that Hong Kong’s commitment to maintaining open markets and free trade was best reflected by its continued high scores in various business rankings by world leading consultancies, including the US Heritage Foundation and Fraser Institute/Economic Freedom Network.
“Being a gateway to China’s mainland, Hong Kong presents vast opportunities to businesses all over the world. China’s 12th Five- Year Programme (2011-2015) underscores Hong Kong’s role in, and opportunities arising from China’s development,” he said.
In the plan, Hong Kong is positioned as an offshore centre for business using the Renminbi; as China’s global financial centre; as an international asset management centre; as an international centre for trade; and as an international shipping centre, playing a significant bridging role.
“Hong Kong’s strategic location has made it the gateway to China’s mainland for business for more than 150 years. Important infrastructural catalysts are in the pipeline for further economic integration, said Fong, referring to the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Hong Kong-Zhuhai-Macau Bridge, which will be completed in 2015 and 2016 respectively, as well as a consultation on a third runway at the Hong Kong International Airport to be completed in September this year.
Fong said that over 3,000 mainland enterprises are based in Hong Kong, which has become the largest international capital raising centre for mainland enterprises, with over 282 billion US dollars raised since 1993.
The Director of the HKETO appealed to the luncheon participants to seize the business opportunities offered by Hong Kong for doing business in China. He particularly introduced to them the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), a free trade agreement (FTA) covering trade in goods, services and investment facilitation.
“CEPA remains the most preferential among all mainland FTAs. It is a win-win agreement, bringing new business opportunities to the mainland, Hong Kong and all foreign investors,” he said. “To leverage on the CEPA benefits, foreign investors are encouraged to establish their businesses in Hong Kong, to acquire or to join forces with enterprises in Hong Kong to make the full use of the CEPA opportunities in entering the mainland market.
Apart from CEPA, Hong Kong has signed FTAs with other important trading partners and 29 agreements on avoidance of double taxation with other places, including Brunei, Indonesia, Thailand, Singapore and Vietnam, to pave the way for further economic cooperation.
Noting the growing trade relations between Hong Kong and the ASEAN, and Thailand in particular, Fong said the ASEAN region as a bloc had become Hong Kong’s second largest trading partner, just after China’s mainland, whereas Thailand is the second largest trading partner among ASEAN countries with 14 billion USD trade volume in 2010.
With the DTA and Investment Promotion and Protection Agreement signed between Hong Kong and Thailand in 2005, Fong reassured that the trade and economic ties between the two places would be further developed and strengthened.