Twenty per cent of companies assisted by InvestHK in setting up business in Hong Kong have indicated that CEPA was one of the reasons leading to their decision to invest in the city.

This was the message today from Secretary for Commerce, Industry & Technology John Tsang who said some companies invested in Hong Kong purely because of CEPA.

Mr Tsang told legislators today: "We consider the implementation of CEPA brings to Hong Kong companies more business opportunities in the Mainland market, thereby increasing the attractiveness of Hong Kong to overseas investors."

A Census & Statistics Survey found that as at June 1 the city had 1,098 regional headquarters and 2,511 regional offices of companies incorporated outside Hong Kong, representing increases of 13.7% and 12% compared to the figures in 2003, and the largest percentage increases since 2001.

Cost and availability

The survey also showed that among the factors affecting the choice of location, 26% and 33% of the responding companies considered "cost and availability of business accommodation" and "cost and availability of residential accommodation" as unfavourable factors for Hong Kong, representing 2 percentage points and 4.1 percentage points less than the corresponding figures in 2003.

To attract foreign and Mainland companies to set up offices in Hong Kong, InvestHK has been publicising Hong Kong's advantages to potential investors. These include free flow of information, a low and simple tax system, corruption-free government, absence of exchange control and communication, transport and other infrastructure.

Mr Tsang said the Government will continue to work to improve the business environment and publicise and uphold all existing favourable factors.