Grand plan: Taichung Mayor Jason Hu and Secretary for Constitutional & Mainland Affairs Stephen Lam meet the media to announce the Hong Kong-Taiwan intercity forum initiative.

Hong Kong and Taiwan will launch an intercity forum to enhance exchange and co-operation, Secretary for Constitutional & Mainland Affairs Stephen Lam says.

Meeting Taichung Mayor Jason Hu during his visit to Hong Kong today, Mr Lam said the dialogue will promote trade, tourism and cultural exchange.

"The mayor and myself have jointly agreed we will initiate [the] Hong Kong-Taiwan intercity forum, and we will start with Taichung and Hong Kong," Mr Lam said. "We will pick a convenient moment in the next few months to commence this dialogue starting in Hong Kong and I warmly welcome the mayor's invitation that we reciprocate later to visit Taichung."

He said the cross-strait economy has room for development on the basis of the three direct links, adding he hopes more Taiwan and Mainland enterprises will list in Hong Kong.

Noting the Trade Development Council has already established a representative office in Taiwan, Mr Lam said the two jurisdictions are preparing to form a Hong Kong-Taiwan trade co-operation body.