CE hails support pledge

August 17, 2011

Chief Executive Donald Tsang has welcomed the Central Government's plan to introduce new measures to boost Hong Kong's economy, saying it will benefit the whole community and further boost the country's development.
 
In welcoming the package announced by Vice-Premier of the State Council Li Keqiang at the Forum on the 12th Five-Year Plan and the Mainland-Hong Kong Economic, Trade & Financial Co-operation today, Mr Tsang said it will also augment Hong Kong's ties with the Mainland.
 
The measures cover finance, economy and trade, transport, tourism, food and energy, healthcare services and education.
 
Finance, economy
Twelve measures are related to the financial area, reflecting the support of the Central Government in strengthening Hong Kong's position as an international financial centre.
 
Seven of the measures are beneficial to the development of offshore renminbi business, which include revising measures for the management of foreign investment projects to support and encourage Hong Kong enterprises to use the renminbi for direct investments on the Mainland, and allowing investments on the Mainland equity market by means of the Renminbi Qualified Foreign Institutional Investor scheme.
 
On the development of the offshore renminbi bond market, the Central Government said the issuance of renminbi-denominated bonds in Hong Kong will be a long-term institutional arrangement and the scale of issuance will be gradually expanded.
 
The Central Government will also allow non-finance related domestic enterprises to issue renminbi-denominated bonds in Hong Kong.
 
On the equity market, the Central Government will implement an exchange-traded fund consisting of Hong Kong stocks on the Mainland and continue to support the listing of Mainland companies in Hong Kong.
 
The Hong Kong Government said these measures are important to the Hong Kong equity market which has been serving as the key capital raising platform for Mainland companies and the market for Mainland equity investors as indirect participants.
 
Trade, tourism
Li Keqiang said a Closer Economic Partnership Arrangement supplement will be signed by the two sides within the year to intensify the liberalisation of the services trade.
 
The Central Government supports the deepening of co-operation between the MTR Corporation and its counterparts in Beijing, Shanghai and Shenzhen in railway construction and operation, and its expansion to other cities like Hangzhou.
 
Meanwhile, the Central Government has introduced a series of targeted measures, including encouraging Hong Kong travel agents to operate on the Mainland, and supporting the development of cruise homeporting business in Hong Kong.
 
Livelihood issues
The Central Government announced safeguards for supplies to Hong Kong, including the stable supply of high quality agricultural products like grain, meat, vegetables and fruit, which will help relieve the pressure of rising food prices.
 
On energy supply, the Central Government announced the construction of the Hong Kong branch-line of the Second Pipeline of the West-East Gas Transmission Project will be accelerated, so the supply of natural gas to Hong Kong will be advanced to the second half of next year.
 
The Hong Kong healthcare sector will also be allowed to set up hospitals, as a sole proprietor, in more provinces and cities on the Mainland.
 
On education, the Central Government said more Mainland universities will waive the entrance examinations for Hong Kong students. The New Academic Structure for Senior Secondary Education and the qualification of the Hong Kong Diploma of Secondary Education Examination will be nationally accepted.