Closer ties: Chief Secretary for Administration Henry Tang and Shenzhen Municipal Committee Secretary Liu Yupu meet in Shenzhen.

Hong Kong and Shenzhen will form a task force to study the establishment of a modern service sector demonstration zone at a site in Qianhai in Shenzhen, Chief Secretary for Administration Henry Tang says.

Leading a business delegation to Shenzhen to tap new co-operation opportunities today, Mr Tang said the Commerce & Economic Development Bureau will take the lead to study how to develop the zone with the Shenzhen side.

After meeting Guangdong and Shenzhen municipal officials Mr Tang said a control point will be established in Qianhai as it is strategically important, situated between Shenzhen and Hong Kong airport.

Both sides agreed to promote infrastructure and creative industries, and the flow of people, traffic and trade. They will explore the viability of implementing measures in Guangdong on a pilot basis as proposed in the Outline of the Plan for the Reform & Development of the Pearl River Delta.