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This weekend the curtain will come down on what has been hailed as China's "coming out party", better known as the Beijing Olympic Games. It has been a party to remember. A spectacular opening ceremony, a hatful of world records and China right up there in the medals table.
The past two weeks or so have not only been a celebration of sporting prowess, they have been a celebration of 30 years of reform and opening up in Mainland China as well as a celebration of centuries of rich cultural heritage and tradition.
Hong Kong is proud to be part of the celebrations as a Special Administrative Region of China and as a co-host city for the Beijing Olympics. Today we stand at the gateway of a new era, what is often described as the next phase in China's opening up.
Although many of you were not yet born when the Mainland began its reform program in 1978, you will certainly be impacted by this ongoing process in the next 30 years. I will highlight what this means for Hong Kong and how we intend to remain relevant within our nation and within the international community as a business and financial centre full of promise and opportunity.
Hong Kong has benefited greatly from the Mainland's reform process. We have also made a significant contribution to the nation's economic growth and prosperity. As this opening up and reform continues, we will have an increasingly important part to play.
Just last month, the latest round of liberalisation measures were announced under our unique free trade arrangement with the Mainland, what we call the Closer Economic Partnership Arrangement, or CEPA.
From January 1, 40 services sectors will be covered by CEPA, up from the current 38 sectors. These include key areas such as banking, tourism, logistics, convention and exhibition, and financial services, to name just a few.
Significantly, CEPA has been expanded every year since its launch in 2004. This is a clear sign of the Central Government's continued support of Hong Kong and recognition of our role as a two-way platform for trade to and from the Chinese mainland.
CEPA rules are nationality-neutral, which means overseas companies incorporated in Hong Kong can enjoy the same benefits as local companies. This is an attractive arrangement for foreign firms setting up operations in Hong Kong, and strengthens our status as an international city.
To speed up this liberalisation process, the Governments of Hong Kong and Guangdong have agreed on a number of initiatives - in addition to CEPA - for early implementation, taking advantage of our already strong cross-boundary economic ties.
This package of measures includes closer co-operation in areas such as education, tourism and the environment. No doubt you will see first-hand, the enormous benefits of closer cross-boundary integration and the opportunities it offers when you visit to the Pearl River Delta.
As Secretary for Financial Services and the Treasury, financial co-operation is at the top of my agenda. Here Hong Kong has a double responsibility as an international financial centre and as China's most important city for global finance. As the Mainland continues to open up, we have a vital job to do in dovetailing our two financial systems.
Allow me to give you an example. Renminbi banking was launched in Hong Kong in 2004. Since then, Renminbi deposits have increased from 12 billion yuan to 58 billion yuan as of March this year. Also, last year Hong Kong became the first place outside the Mainland to posses a Renminbi bond market.
Our close links with major financial centres around the world together with a robust regulatory regime, freely convertible currency and deep pool of expertise make Hong Kong an ideal testing ground for the Mainland's financial services sector.
Secretary for Financial Services & the Treasury Prof KC Chan gave this address at the launch ceremony of the Dragon 100 Young Chinese Leaders Forum.
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