Addressing 200 mainland executives and officials during the 10th China International Fair for Investment and Trade in the southern Chinese city of Xiamen, Mike Rowse, Director-General of InvestHK, announced that supporting Chinese firms with international ambitions would be a "top priority" for the government's investment promotion agency.

“Private companies in the mainland are maturing quickly, and many are capable of going global,” he noted. “We give them the best possible chance of success. They can test and fine-tune their products in our full-blown market economy, and use it as a springboard to move further afield.”

InvestHK helped 21 mainland companies establish or expand operations in the SAR in the first six months, and expects by the end of the year to top the record of 38 achieved in 2005. In the first half of this year, 105 companies were approved, with planned investments amounting to US$405 million. The total number of companies authorised to invest in Hong Kong surged by 58% last year, to 253.

The agency offers a wide range of free services. These include advice on Hong Kong’s regulatory and business environments, sector-specific consultations and detailed guidance on incorporation. It also facilitates contacts with other government departments in the SAR, and provides introductions to prospective business partners.

Hong Kong is Asia’s largest recipient of foreign direct investment after the mainland. FDI inflows reached US$35.9 billion last year, up from US$34.0 billion in 2004 and US$13.6 billion in 2003. For the January-March 2006 period, inflows amounted to US$13.16 billion.

Some 350 mainland firms have listed on the Hong Kong Stock Exchange since 1993, raising US$160 billion in equity. They include Fujian-based gold mining concern Zijin Mining, and, in May this year, telecommunications equipment designer and manufacturer DBA Telecom.

The intensification of Hong Kong’s campaign to attract mainland firms includes the recent expansion of InvestHK promotion offices in Beijing and Guangdong, and the opening later this year of new facilities in Shanghai and Chengdu.

“A bigger and broader presence enables us better to reach out to potential investors and cater to their specific needs,” Rowse observed.

“Competition for investment across the Asia-Pacific region is keen. But we have no doubt that Hong Kong can maintain and enhance its competitive edge,” he added.