Mainland China is a major investor in Hong Kong, representing 29% of its total foreign direct investment, the Director-General of Promotion for Invest HK says.

Mike Rowse was speaking today at a spring reception for

business leaders of HK-based Chinese enterprises, co-hosted by Invest HK and the HK Chinese Enterprises Association.

As the development of China's economy accelerates and optimism in Hong Kong's business environment soars, more than 2,000 Chinese enterprises have invested here, commanding total assets valued at around US$220 billion, the association's Vice Chairman Wang Huiheng said.

Chinese enterprises in Hong Kong play an important role in such industries as banking, insurance, transportation and tourism, he added. Their business volume and shares account for around 25% of the local market.

"As of July 2003, 242 Mainland enterprises listed on the main board and Growth Enterprise Market of the Hong Kong Stock Exchange, accounting for 28% of total market capitalisation.

Mainland enterprises aid HK's prosperity, stability

"As the Mainland's largest external enterprise group, Chinese enterprises in Hong Kong play an active role in developing the Mainland economy and facilitating prosperity and stability in Hong Kong," he noted.

The strong presence of Mainland enterprises here demonstrates your confidence and commitment to Hong Kong, Mr Rowse said.

The CEPA and more relaxed immigration regulations for Mainland visitors, he went on, will enhance business flows between the two jurisdictions, especially in the service industry and high value-added manufacturing sectors, accelerating the integration of both economies.

HK leading source of external investment in Mainland

Similarly, Hong Kong has been the leading source of external investment in the Mainland. The total accumulated direct investment absorbed from Hong Kong between 1978 and 2003 amounted to US$222.6 billion, representing 44.38% of total foreign direct investment in China.

In 2003, Hong Kong enterprises invested US$17.7 billion in the Mainland, 33.08% of total foreign investment, Mr Wang said.