The Fujian provincial government in East China is considering allowing residents in some cities to visit Hong Kong on an individual basis as part of its efforts to strengthen economic ties with the special administrative region (SAR).

Vice-Governor Ye Shuangyu told reporters yesterday: "I believe the people of Fujian will have this opportunity very soon.'' He added that the move would benefit both Fujian and Hong Kong.

Speaking in Fuzhou, Stephen Ip -- the Hong Kong regional government's secretary for economic services and labour -- said he welcomed the remarks and added that the issue would be addressed during meetings between officials from both sides next week.

Seven cities in South China's Guangdong Province are now allowed to travel to Hong Kong without having to join tour groups. This is expected to further increase the number of tourists visiting Hong Kong and thus boost its economy. The privilege will be extended to Beijing and Shanghai in September.

Ye and Ip were attending the launch in Fujian yesterday of the Fujian-Hong Kong Week. The event is the first major business mission from Hong Kong to the Chinese mainland since the SARS epidemic was brought under control. It is aimed at enhancing economic co-operation between the two areas.

About 200 government officials and business people from Hong Kong are now visiting Fujian, including Financial Secretary Henry Tang.

The Closer Economic Partnership Arrangement, a free-trade pact signed on June 29 between the mainland and Hong Kong, will help expand co-operation between Fujian and Hong Kong, said officials from both sides.

The pact initially allows a zero tariff rating on a number of Hong Kong products exported to the mainland. It will further open up 17 areas of the mainland's service sector to Hong Kong companies, starting from next year.

Ye said there is plenty of room for Hong Kong businesses to help upgrade Fujian's traditional industries using advanced technology, as well as in sectors such as civil construction, transportation, environmental protection and the service sector.

Zhang Qiu, deputy director of Fujian's foreign-trade department, pledged to strengthen co-operation with Hong Kong in financial services and logistics. He also called for closer co-operation between Fujian, Hong Kong and Taiwan in high-tech industries.

Fujian welcomes Hong Kong financial institutions setting up branches or offices in the province and qualified Hong Kong banks taking shares in local banks, he said.

After visiting some logistics facilities in Fuzhou, Hong Kong's Ip said: "There are many opportunities in the logistics business in Fujian, particularly under the partnership agreement.'' Under the partnership agreement, Hong Kong logistics firms will be allowed to set up wholly owned entities on the mainland.

Ip said the province's logistics sector has great room for growth given the fact that Fujian is a relative newcomer in this area and provides strong manufacturing growth, low costs and access to other mainland markets.

The Fujian authorities yesterday opened up 180 key projects to overseas investment. The projects involve total investment of 70.8 billion yuan (US$8.53 billion) and cover sectors such as machinery, electronics, petrochemicals, light industry, textiles, infrastructure and services.

Hong Kong has been the largest source of overseas direct investment for Fujian, with the accumulated amount as of the end of last year being US$20.5 billion or 55 per cent of the province's total, said John Tsang, Hong Kong's secretary for commerce, industry and technology.

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