New VP of China Understands Hong Kong Well, Says Chief Executive

by Mary Swire, for LawAndTax-News.com, Hong Kong

21 March 2008

Hong Kong's Chief Executive Donald Tsang said on Wednesday that China's new Vice-President Xi Jinping, who will be in charge of Hong Kong affairs, knows Hong Kong's social, political and economic conditions well.

Summing up his trip in Beijing with the media, Mr Tsang said that he had a good impression of Mr Xi after their meeting. He added that Mr Xi showed a clear understanding of many aspects of Hong Kong, and has a well established network in the jurisdiction.

Mr Tsang added the Central Government will not change its policy towards Hong Kong, and will continue to support the city.

Regarding recent stock market fluctuations, Mr Tsang reiterated that Hong Kong has a good foundation, and development on the Mainland continues to trigger economic activity in the city.

Mr Tsang additionally revealed that the Central Government is analysing the possible impact of the "through train" scheme for Mainland residents to invest in Hong Kong equity, but no timetable is available yet.

After meeting People's Bank of China Governor Zhou Xiaochuan, Mr Tsang announced that Mr Zhou had agreed to a further expansion of renminbi business in Hong Kong, adding that it will remain the centre of renminbi business development outside the Mainland.

During his stay in Beijing Mr Tsang also visited the China Securities Regulatory Commission and the Ministry of Culture.

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