The provincial government of Guangdong and the government of the Hong Kong Special Administrative Region will jointly sponsor an economic, technology and trade fair in Hong Kong early next month.

It will be the first time the Hong Kong SAR government has joined hands with its counterpart in the neighbouring province of Guangdong to hold such an event in Hong Kong.

The July 5 fair will become a platform not only for the Guangdong delegation to secure capital from Hong Kong, but also for Hong Kong to further promote its investment advantages for Guangdong businesspeople, noted Liang Yaowen, head of the provincial foreign trade and economic co-operation department.

The province will promote 160 key projects as well as rich product categories of trade opportunities for businesspeople in Hong Kong, particularly those related to service outsourcing, he said.

Liang said that the Guangdong businesspeople invited to the event would be exposed to investment opportunities in Hong Kong.

"The time has come for Guangdong businesspeople to have a stronger presence in Hong Kong," he said. "The potential for Guangdong's investment in Hong Kong will be substantial."

He said Guangdong businesspeople set up or expanded investment for 21 projects in the January-May period, with capital inputs worth US$167 million.

Guangdong-invested projects totalled 714 in Hong Kong by the end of 2005, involving investments of US$2.82 billion. And the projects numbered 54 in 2005 alone, with investment reaching US$235 million.

The official said that Hong Kong has long been the most important capital source for Guangdong Province.

Hong Kong businesspeople had set up 89,177 enterprises in the province by May, accounting for 72.58 per cent of the total overseas-invested enterprises in the province.

Their contractual investment was worth US$173.35 billion, making up 63.41 per cent of the total in the province; while committed investment of US$107.83 billion made up 64.21 per cent, according to official statistics.

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