Mainland, HK urged to co-op on overseas investment

HONG KONG - Chinese Vice-Premier Li Keqiang, in a congratulatory letter to an investment summit opened on Wednesday in Hong Kong, has urged companies from the Chinese mainland and Hong Kong to join hands in participating in global competition and expanding bigger development space.

"China's opening-up is entering a new phase. It is necessary for us, and we do have the capability, to speed up the pace of the 'go global' strategy," Li said in the letter, which was read out by Director of the Liaison Office of the Chinese Central People's Government in Hong Kong Peng Qinghua.

"It is my hope that mainland and Hong Kong companies should seize the new opportunities, brought forward by structural adjustment of the world economy and possible technological and industrial breakthroughs, play out respective virtues and create new cooperation models to join hands in participating in global competition and expanding bigger development space, so as to push ahead cooperation and exchange between the mainland and Hong Kong to a new level," Li said.

The two-day conference, the second China Overseas Investment Summit, is hosted by Hong Kong China Chamber of Commerce, under the theme of "Global Economic Transformation and New Approaches to China's Overseas Investment". More than 1,200 government officials, investors, senior companies management and experts from over 40 countries and regions were expected to take part in the high- profile meeting.

Huang Mengfu, vice-chairman of the National Committee of the Chinese People's Political Consultative Conference, the country's top advisory body, told the opening ceremony that it is still the important period of strategic opportunities from now on for Chinese companies to go global.

Globally, the fallout of the financial crisis was still there and various economies were trying to develop manufacturing economies. Chinese companies were faced with increasing opportunities of overseas investment and mergers and acquisitions, Huang said.

Hong Kong Chief Executive CY Leung said Hong Kong is the gateway for both overseas investment which flows into the Chinese mainland and mainland investment which aims to enter the world market.

Figures released by the Ministry of Commerce showed that direct investment from Hong Kong in the mainland totaled $553.77 billion from 1997 to the end of May this year, making Hong Kong the mainland's biggest source of overseas investment.

Meanwhile, Hong Kong was also the mainland's top destination for outbound investment. Data showed that the mainland's accumulative investment in Hong Kong totaled $199.06 billion as of the end of 2010, accounting for 62.8 percent of its total outbound investment.

Leung said Hong Kong will continue to be an ideal platform for mainland companies to invest overseas, thanks to the city's doing-business environment, international commercial network and excellent modern services industry system.

"Through cooperation between the mainland and Hong Kong, Hong Kong can contribute more to the nation and push forward with its own development at the same time," Leung said.

Chan Kingwai, Chairman of Hong Kong China Chamber of Commerce, said the investment summit can serve as a platform to generate good ideas and advice for Chinese companies to achieve better, more stable and faster results in their "go global" efforts.

Chan said the investment summit will continue to pursue its goal of "serving the country, prospering Hong Kong, and benefiting the world".

The first China Overseas Investment Summit was held in Hong Kong during November 15 to 16 in 2011.