Friendly exchange: Financial Secretary Henry Tang pays a visit to Governor of People's Bank of China Zhou Xiaochuan this afternoon and exchanged views on the prospect of developments of the financial sectors in Hong Kong and the Mainland.

The GDP forecast growth rate revision shows that Hong Kong has bounced back quickly after the SARS outbreak, Financial Secretary Henry Tang says, adding that he is optimistic about Hong Kong's economic outlook.

Speaking in Beijing this afternoon, Mr Tang said he believes there will be improvements in Hong Kong's employment situation by year's end.

He also welcomed the State Administration of Foreign Exchange's decision to allow mainlanders to carry more foreign exhange.

Foreign exchange allowance doubled for Mainlanders

It announced today that from September 1, people entering or leaving the Mainland will be allowed to carry foreign currency in cash equal to US$5,000 without making a Customs declaration.

The move aims to facilitate businesses and tie in with the Mainland's further reform and opening up.  At present, they are allowed to carry only US$2,000.

On the 'individual-visit' scheme, Mr Tang said it will be available to people in Shanghai and Beijing on September 1, adding that the scheme should be implemented gradually to ensure that  Hong Kong has the support systems in place for visitors.

Beijing upbeat on HK's latest economic situation

During his stay in Beijing, Mr Tang met with State Councillor Tang Jiaxuan to report on his work as Hong Kong's new financial chief and the latest economic situation.

He also exchanged views with Governor of People's Bank of China Zhou Xiaochuan on the prospect of developments of the financial sectors in Hong Kong and the Mainland.

In a separate development, Government Economist Tang Kwong-yiu said Government revenue may be affected by SARS, which will also impact GDP. He said the influence of SARS on Government revenue will be known early next year, and he hoped that the impact will be short-lived.

Details on CEPA ready next month

On the Closer Economic Partnership Arrangement, Mr Tang said it will bring Hong Kong many business opportunities.

He said details of the arrangement are being worked out, and will be made public next month. As the arrangement will be implemented in stages next year and in full operation in 2006, its effect on Hong Kong's economy will not be seen immediately, he said.

On the 'individual-visit' scheme, Mr Tang said it will help boost tourism, employment and the economy.