TheThe StrategicStrategic RoleRole ofof HongHong KongKong

Ralph Chow Director, Japan Kong Trade Development Council ’s Handover to China China’s coast

Pearl River Delta (PRD) cities Hong Kong: China’s Largest Source of Investment

Percentage share of FDI 1979-2001(Utilised)

Other Hong Kong 29% 47%

Taiwan 7% Japan USA 8% 9% Source: MOFTEC PRD: China’s Biggest Spenders 40 Retail sales of consumer goods in 2001 35 30 37.7 25 20 15 22.5 19.3

US $ billion $ US 10 5 10.1 0 PRD Shanghai Beijing Tianjin Shenzhen 1979

Population: 300,000 Shenzhen 2002

Population: 7,010,000 There are four world-class golf courses in Hong Kong. There are nearly 40 major golf courses in the , ten of which are world-class, all within a few hours drive of Hong Kong

Humen Bridge

Hong Kong - Shekou Western crossing

Proposed Hong Kong - Zhuhai - Macau Bridge Pan-PearlPan-Pearl RiverRiver DeltaDelta (P-PRD)(P-PRD)

99 ProvincesProvinces ++ HongHong KongKong && MacauMacau 99 4040％％ China’sChina’s PopulationPopulation 99 1/31/3 China’sChina’s GDPGDP 99 4444％％ China’sChina’s FDIFDI 99 120,000120,000 HongHong KongKong CompaniesCompanies 99 HK’sHK’s RoleRole asas BusinessBusiness ServiceService CenterCenter Hong Kong’s Competitive Advantage

Location – 40% of world’s population within 5 hrs flight time 20032003 20042004 1.1. HongHong Kong:Kong: 202020 milmilmil TEUTEUTEU 212121 milmilmil TEUTEUTEU 2.2. Singapore:Singapore: 1616 milmil TEUTEU 1818 milmil TEUTEU 3.3. Shanghai:Shanghai: 1111 milmil TEUTEU 1414 milmil TEUTEU 4.4. Shenzhen:Shenzhen: 1010 milmil TEUTEU 1111 milmil TEUTEU 5.5. PusanPusanPusan::: 9.59.5 milmil TEUTEU 1010 milmil TEUTEU

Hong Kong’s trade conditions to rise despite any adverse conditions

20,000 140,000 --- Total exports (HK$mn) 18,000 --- Hang Seng Index 120,000 Bird flu 16,000 14,000 100,000 12,000 80,000 10,000 60,000 8,000 Global stock market crash 9/11 6,000 40,000 War Asia economic 4,000 fears 20,000 downturn 2,000 0 0

4 -80 -82 -84 -87 -89 -91 -96 -98 -00 n-86 n-88 n-93 n-95 n-02 an-81 an-83 an-90 an-92 an-97 an-99 an-01 Jan J Jan J Jan Jan-85Ja Jan Ja Jan J Jan J Ja Jan-9Ja Jan J Jan J Jan J Ja Jan-03 Hong Kong as Trade Ｆair Capital

Hong Kong Convention and Exhibition Centre

Source: HKCEC and HKECOSA 2001 C E P A

CEPA (Closer Economic Partnership Arrangement)

FTA Hong Kong Mainland China