Shanghai woos HK banking
( 2003-11-25 22:30) (China Daily)
The Shanghai authority yesterday urged Hong Kong banks to increase their presence in Shanghai under the Closer Economic Partnership Arrangement (CEPA) to better serve the growing number of Hong Kong investors in the mainland commercial hub.
Shanghai Vice-Mayor Jiang Sixian made the request at yesterday's Shanghai-Hong Kong Development Forum when answering questions raised by a representative from the Hong Kong-based Wing Hang Bank, which is considering setting up a branch in Shanghai next year.
"CEPA will further facilitate Hong Kong banks to conduct business or set up their offices or branches in Shanghai,'' said Jiang.
"There is a big potential for renminbi services in Shanghai. Hong Kong banks are especially advantageous because the two cities have such close economic links,'' Jiang said.
More than 10,000 Hong Kong businesses have made their investment in Shanghai, with a total registered capital of US$18 billion, according to statistics revealed at yesterday's forum which was held by the Shanghai Overseas Friendship Association, the Hong Kong Trade Development Council and some other government bodies and associations.
Hong Kong is Shanghai's largest overseas investor. Hong Kong businesses' total investment in Shanghai is around three times that of their registered capital, and contributes around one fourth of the city's overseas direct investment, according to Jiang.
Hong Kong Financial Secretary Henry Tang yesterday also urged the special administrative region to export more value-added services to Shanghai.
"Hong Kong's service industry has its advantages, especially in finance, trade and exhibition,'' said Tang. "And Shanghai is a best choice.''
In another development, Shanghai authorities yesterday also made a list of infrastructure construction projects, including urban railways and the second phase of Yangshan deep water port, which are available for Hong Kong investors in the coming years.
Shanghai will invest around US$10 billion in infrastructure annually in the next few years preparing for World Expo 2010, according to Jiang.
On metro projects for instance, Shanghai plans to build 20 to 30 kilometres of urban railways on average per year to expand its current urban network by some six times to a total length of 600 kilometres.
"Part of those infrastructure projects will be open for public bidding. I believe under CEPA Hong Kong enterprises will have more opportunities,'' said Jiang.
Under the latest CEPA memorandum of understanding signed between Hong Kong and the Chinese mainland, however, those Hong Kong-based enterprises, with more than 50 per cent of their shares acquired lately by foreign enterprises, need to wait for one year to enjoy preferential policies under CEPA.
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