Hong Kong's supportive environment for business and central location has attracted Dragon River, the American herbal health supplements manufacturer, to set up its Asia Pacific headquarters here.

Recognising that traditional Chinese medicine has significant potential in world markets, the company produces health drinks made from fruit grown in Guangxi Province, with Asia, the US and Europe its target markets.

It also has a complete line of traditional Chinese medical products which will be introduced over the next two years.

InvestHK Associate Director-General of Investment Promotion Simon Galpin welcomed Dragon River's investment decision.

He said the company's move is a vote of confidence in Hong Kong's growing Chinese medicine industry.

"Dragon River will also be able to take advantage of the new CEPA arrangements which particularly benefit Chinese medicine companies, facilitating co-operation and exchange between Hong Kong and the Mainland," he said.