Rapid growth of PRD, YRD offers opportunities for HK businessmen

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Last updated at: (Beijing Time) Tuesday, March 23, 2004

Rapid growth of PRD, YRD offers opportunities for HK businessmen

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Hong Kong Trade Development Council (TDC) suggested Hong Kong businessmen to locate in more than one place of the Yangtze River Delta (YRD) region and Pearl Delta River (PRD) region and have different business strategies in order to cover these regional market.

TDC's Chief Economist Edward Leung said Monday at a press conference that the two regions complement each other and they account for over 50 percent of the foreign direct investment into the Chinese mainland.

He stressed that "each region has its own strengths and business advantages."

Leung said, Guangdong is a base of downstream, particularly, light consumer goods production base, while the YRD is a leading producer of raw materials and intermediate goods.

He said toy assembly in the PRD have become more reliable and competitive in terms of productivity, quality and delivery, while in the YRD, the ample supplies of silk and chemical fiber would be beneficial for Hong Kong garment manufacturers.

A TDC research report stressed that the two regions deserve sperate attention, but equal emphasis. Shangha is in the YRD and Guangzhou in the PRD continue to be major distribution centers with different catchments.

The report said geographic proximity makes Hong Kong natural services hub for the PRD. Given the development of the YRD and following the expansion of Hong Kong companies there, Hong Kong can also serve the YRD as a "knowledge hub" with its professional know-how and expertise.

The report believed that CEPA (Chinese mainland/Hong Kong Closer Economic Partnership Arrangement) has lowered the market entry barriers to the Chinese mainland for Hong Kong companies, facilitating extension of Hong Kong services to the YRD.

In mid-March, 2003, among the 97 H-share Chinese mainland companies, listed in Hong Kong, 22 are from the YRD and almost allthe companies surveyed in Jiangsu and Zhejiang consider Hong Kong as the best bridgehead for tapping world markets, the report said.

To supplement the report, the TDC also published a guide of 16 major cities in the YRD region.

TDC Chairman Peter Woo will lead a business delegation to visitYRD cities from Tuesday till the end of March to explore Hong Kong-YRD cooperation under CEPA.

Source: Xinhua

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