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Fujian seeks cooperation with city's modern services providers

Updated: 2011-03-30 06:38

By Joy Li(HK Edition)

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Fujian seeks cooperation with city's modern services providers

Tung Chee-hwa (left), vice-chairman of Chinese People's Political Consultative Conference National Committee and former chief executive of Hong Kong, and Sun Chunlan, party secretary of Fujian province, officiate at the Fujian-Hong Kong Cooperation and Development Presentation held in the city Tuesday. Photo Provided by Zhu Xingxin

Hong Kong and Fujian will see further cooperation in areas such as modern service industries, with the first batch of 59 projects signed on Tuesday.

At the Fujian-Hong Kong Cooperation and Development Presentation held in the city, 59 projects worth a total investment of $8.66 billion were signed between Hong Kong companies and representatives of the Fujian delegation led by Sun Chunlan, party secretary of Fujian province.

"For a long time, Fujian has enjoyed close cooperation, frequent communication and extensive contact with Hong Kong. After Hong Kong's handover to the motherland, Fujian was the first on the mainland to set up a bilateral economic cooperation committee. In recent years, the two sides have made full use of CEPA mechanism (Mainland and Hong Kong Closer Economic Partnership Arrangement) to deepen and expand bilateral exchanges and cooperation," said Sun.

Out of the 59 projects, 40 are related to the modern service industry and 19 are in the manufacturing sector.

"We hope that with the advanced modern service industry in Hong Kong, we can elevate our manufacturing industry, accelerate industrial transformation and upgrading, and develop a modern industrial system," Sun added.

One of the projects is building a logistics center, which was signed between Kerry EAS Logistics and the municipal government of Fuzhou, the provincial capital of Fujian. Overall investment will reach $30.5 million. The project aims to build a cross-Straits logistics hub in Fuzhou, providing local and Taiwan clients with nation-wide logistics solutions. Kerry EAS Logistics, a member of Hong Kong-based Kerry Logistics and Taiwan T-John Transportation, partly owned by Kerry Logistics, will jointly lead the project's operations.

In the financial sector, Fuzhou-based Industrial Bank and Hang Seng Bank signed agreements to seek further cooperation on the yuan business and cross-border trade and investment.

Sun said Fujian expects more Hong Kong financial institutions and professional intermediaries to set up branches in the province and support Fujian companies with listings and capital raising in Hong Kong.

According to official figures, Hong Kong is Fujian's major source of overseas investment and an important platform for Fujian's outbound investment. Up till now, an accumulated $50.1 billion investment from Hong Kong has been utilized, accounting for half of total overseas investment in Fujian. In 2010, bilateral trade between the two sides hit a record high of $4.72 billion.

In the capital market, 70 Fujian companies have listed in Hong Kong, raising over HK$40 billion.

In the first two months of 2011, the contractual Hong Kong investment was $1 billion, up 29.3 percent year on year. During the same period, bilateral trade volume was $850 million, up 31.37 percent.

China Daily

(HK Edition 03/30/2011 page3)

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