Win-win: Invest Hong Kong's Director-General of Investment Promotion Mike Rowse and Deputy Director of the Department of Foreign Economic Cooperation in the Ministry of Commerce, Ying-jun Liu, highlight the benefits of using Hong Kong as a platform for mergers and acquisitions - and global expansion.

An investment seminar in Shanghai aimed at promoting Hong Kong as a merger and acquisition platform drew delegates from more than 100 Mainland enterprises.

The event provided tips on establishing or strengthening their footholds in Hong Kong, to help them expand globally - in line with the Central Government's "Going Out" policy.

Invest Hong Kong, the Ministry of Commerce's Department of Foreign Economic Cooperation, and the Liaison Office's Economic Affairs Department's Trade Office jointly organised the event - the second investment seminar the trio has hosted.

HK provides access to global capital

Invest Hong Kong's Director-General of Investment Promotion Mike Rowse was pleased at the event's strong turnout. "Strengthening economic ties between Hong Kong and the Mainland creates a win-win situation for both places," he said.

"A presence in Hong Kong allows Mainland enterprises to accelerate their global expansion by obtaining access to international capital - and to acquire new customers and local professional know-how."

At the same time, he added, their investment strengthens Hong Kong's role as an international finance centre and a gateway to China. It also adds weight to the local stock market.

At the end of July, 242 Mainland enterprises were listed in Hong Kong, including 81 H-share companies, 73 red chips, and 88 Mainland enterprises that are registered overseas. They jointly raised more than $780 billion in capital.

HK helps Mainland companies expand globally

The Deputy Director of the Department of Foreign Economic Cooperation in the Ministry of Commerce, Ying-jun Liu, said Hong Kong is still one of the world's most dynamic locations to conduct business.

"A growing number of leading Mainland enterprises aim to expand into global markets," she said. "Establishing a business presence in Hong Kong and using the SAR's many advantages is an important first step towards their global expansion. This trend will also reinforce Hong Kong's position as an international finance hub, and a trading and services centre, enhancing the economic development of both Hong Kong and the Mainland."

She sincerely hoped that Mainland companies attending the seminar would take the opportunity to learn more about the investment environment and business climate in Hong Kong, and gain valuable input for developing their corporate strategies.

M&A experts share their insights

Several local leading experts in mergers and acquisitions shared their insights with seminar goers. They included:

* BNP Paribas Peregrine Capital's Managing Director Isadora Li, who briefed participants about trends in mergers and aquisitions and its comparison to direct investment.

* Eddie Lee, a Partner and PRC Chief Representative of Woo, Kwan, Lee & Lo Solicitors & Notaries, who spoke on M&A rules and regulations.

* Deloitte Touche Tohmatsu Partner John Hung, who talked about accounting considerations, principles and financial concerns surrounding M&As.