Top turnout: Guangzhou Bureau of Foreign Trade & Economic Co-operation Director-General Dr Xiao Zhenyu, InvestHK Director-General of Investment Promotion Mike Rowse, and HK representative to the European Union Christopher Jackson attend the Frankfurt seminar.

Hong Kong and Guangzhou held their first ever joint European investment promotion seminar in Frankfurt today.

The event is to attract German companies to invest in the two cities, and to highlight the opportunities they offer to firms aiming to tap the Mainland market.

More than 100 senior executives from 70 leading German companies attended the seminar which was co-hosted by InvestHK and the Guangzhou Bureau of Foreign Trade & Economic Co-operation, and organised by the HK Economic & Trade Office in Brussels.

Germany is the Mainland's largest European trading and technology partner, and one of its leading foreign investors.

InvestHK Director-General of Investment Promotion Mike Rowse was delighted with the strong turnout.

"The seminar is the second of its kind organised jointly by InvestHK and Guangzhou. The first joint promotion in Tokyo for Japanese businessmen last September was a great success," he said.

"The unique advantages of Guangzhou and Hong Kong offer a winning combination for international investors expanding into the China market. It is no surprise that so many multinational companies have decided to establish their manufacturing plants in Guangzhou, while maintaining management and finance functions in Hong Kong.

"Through a series of overseas joint promotion activities, we aim to attract foreign investors to use Hong Kong as a platform to enter the Mainland market, especially the Pearl River Delta which is one of the most affluent and fastest growing regions in China. This will certainly benefit Hong Kong, the Mainland and foreign investors."

Bureau Director-General Dr Xiao Zhenyu said: "Total direct investment from Germany to Guangzhou has recorded a relatively significant increase in recent years, amounting to 231 million euros as at June, contributed by 48 enterprises and projects.

"German investors in Guangzhou have focused on mechanical equipment, electronic components, petrochemicals, construction materials and sports accessories in the manufacturing sector."

Dr Xiao added that Guangzhou has developed some additional measures to attract foreign investors.

"These include increasing the productivity of the cities to improve their competitiveness; and reinforcing the co-ordination with departments related to customs and excise, finance, taxation, quarantine, foreign exchange administration, banking, cross-border traffic, commerce and trade. Through our central electronic network system, we revolutionised the model for monitoring businesses," he said.

"In addition, we optimise the business environment to reduce operating cost in Guangzhou. Optimising facilities in industrial development zones also makes us more attractive to foreign investors."

Hong Kong representative to the European Union, Christopher Jackson, said: "German companies are looking for ways to control costs while maintaining standards. The Hong Kong/PRD formula offers them a way to do that."