A delegation from Yantai is hosting a trade and investment promotion in Hong Kong from Sunday to Wednesday. They are seeking investors for 10 projects in sectors such as marine engineering, high-end services, advanced manufacturing and e-commerce.

"The new round of development brought by the transformation of the economic structure creates more opportunities for cooperation between Hong Kong and Yantai," said Yang Li, the vice mayor of Yantai.

Hong Kong has been the largest source of overseas investment for Yantai, according to statistics from the city commerce bureau. By the end of May, 3,253 Hong Kong-invested projects had been approved by the Yantai authorities, bringing in $14.9 billion in contracted investment.

Hong Kong's current investment in Yantai covers machinery, electronics, chemicals, food processing, logistics, finance, real estate and tourism, said Yu Dong, director of the city commerce bureau.

Big Hong Kong-invested companies in Yantai include the China Resources Group and Shimao Group.

"Most Hong Kong-invested companies have been successful in Yantai, with some developing into leading companies in their sectors," said Yu.

The Yantai government signed a cooperation agreement with the China Resources Group, enhancing their collaborative initiatives in advanced manufacturing, city infrastructure construction, real estate, new energy and energy conservation, environmental protection and financial services within the five years from 2011 to 2015.

Trade with Hong Kong has grown rapidly, to more than $2.25 billion last year, a year-on-year increase of 31.5 percent.

The trade is in jewelry, textiles, garments, electrical products, machinery, plastic raw materials and leather goods.

Business goes both ways. To date, Yantai-located companies have set up 44 branches in Hong Kong, with a total investment of $97.43 million.

Located on the east of the Shandong Peninsula and neighboring Bohai Bay and the Yellow Sea, Yantai is one of the most dynamic cities in East China. In 1984, it was one of China's first coastal cities to embrace opening-up policies and now one of the most attractive destinations for overseas investment.

A State-level economic and technological development zone, bonded ports, high-tech industrial parks, and a pilot e-commerce service platform for cross-border trade, support the city's dynamic economy.

More than 50 Fortune 500 firms including LG, GM, Henkel, NEC, Toshiba, Hitachi and Mitsui have set facilities in the zones.

"The room for cooperation between Yantai and Hong Kong is still large as the industrial structures of the two cities are complementary," Yu said.