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HONG KONG: Hong Kong-funded process manufacturers in the Pearl River Delta have been offered support to lessen the impact of a new State policy.

The Hong Kong SAR government will help the companies upgrade or shift to high value-added production and provide loans.

The government has also approached local banks and the Hong Kong Association of Banks, asking them to offer more services and support to the companies.

The export tariff rebate for over 1,800 processed goods will either be lowered or cancelled, in line with a policy issued by the Ministry of Commerce last month.

Process manufacturers can now obtain bank guarantees for exports, but they will be required to pay deposits of up to 50 percent of the export value under the new policy, effective August 23.

Acting Financial Secretary of Hong Kong Frederick Ma said the new trade policy would adversely impact the Hong Kong-funded firms and the city's economy.

He said the SAR government will assist the companies and communicate their position to the central government.

A task force comprising government officials and trade representatives from 14 associations met for the first time on Friday.

The task force will study and assess the impact of the new policy and find ways to support the affected companies.

The industry is willing to comply with the new national trade policy, according to Permanent Secretary for Commerce and Economic Development Yvonne Choi, who spoke after chairing the task force meeting.

But Hong Kong-funded firms want a longer buffer period and greater support to deal with the new policy.

"As far as exports of processed items are concerned, the industry is hoping it will be allowed to use bank guarantees or letters of credit in lieu of deposits.

"We would also like to know if Hong Kong manufacturers are interested in moving to the central and western regions on the mainland, as Hunan Province - among others - is willing to offer them preferential treatment," she said.