Hong Kong acting Chief Executive Rafael Hui said on Monday Hong Kong should take advantage of its geographical position and enhance its role as a bridge between the Chinese mainland and the world to maximize its strengths.

Speaking at an economic seminar on Monday, Hui said there are three ways Hong Kong can strengthen its connections with the mainland and engage itself globally.

These include encouraging Chinese mainland enterprises to use Hong Kong as their base to explore international markets, providing services to support regional commercial cooperation and helping Chinese mainland enterprises to find venture capital.

Hui said one of the key priorities of the government's work is to attract overseas and Chinese mainland enterprises to invest in Hong Kong.

"With our world-class international business environment and other supporting facilities, Hong Kong has become a popular investment destination for various Chinese mainland enterprises," he said.

"In recent years, Hong Kong has been a springboard for Chinese mainland enterprises to expand their business into the global market. To further promote economic integration between Hong Kong and the Chinese mainland, we must introduce Hong Kong's diversified services into the Chinese mainland."

The government has been promoting Hong Kong's service industry on the Chinese mainland through the Chinese mainland/Hong Kong Closer Economic Partnership Arrangement which makes it easier for Hong Kong enterprises to enter the mainland market.

Hui said the government will continue to nurture scientific and design talent. "The production cost is relatively high in Hong Kong, which lowers our competitiveness on prices."

With a flexible and stable financial system, as well as a regulation system of international standard, Hong Kong should use its international financial status to help mainland corporations find financing, Hui said.

By the end of 2005, 335 Chinese mainland corporations had been listed in Hong Kong and had raised more than 1 trillion HK dollars (1,290 billion U.S. dollars) since 1993.

Hui expected that more and more capital from the Chinese mainland will be transferred overseas for investment as the Chinese mainland allowed its money -- including insurance companies and China National Social Security Fund -- to invest overseas.

He said that it is essential to consolidate Hong Kong's role as an international commerce, information, finance and services center when advancing trade cooperation with the Chinese mainland.

The government will continue to strengthen Hong Kong's position as the freest economy for business and the best market for the Chinese mainland and overseas investors, he added.

Source: Xinhua