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Enterprises in Beijing and Hong Kong can combine their respective advantages to go global and tap the international market as many global brands are facing difficulties due to the lasting financial crisis, a Beijing municipal government official said on Monday.
"International condition are ripe for enterprises in the country to join hands and to enter the international market for a bright prospect," Xu Kang, deputy director-general of Beijing Municipal Commission of Commerce, said during a seminar on Monday.
Xu added that Beijing's fast overseas direct investment growth is also a good condition for its joint overseas investment with Hong Kong.
"Hong Kong has competitive edge in the services sectors such as accounting, law and finance while Beijing is good at engineering design, infrastructure construction and has low labor cost. A better bridge should be established to serve the cooperation of enterprises in the two cities," he said.
"Joint overseas investment by enterprises from the two cities can focus on sectors such as infrastrucre, minerals, energy, high technology and modern logistics through merging or acquiring shares of overseas companies," Xu added.
The first nine months saw Beijing's ODI reach $737 million, up 53 percent from a year earlier. While Asia, Europe and North America are the major destinations of the city's ODI, Hong Kong attracted 47.9 percent of the city's total ODI in the first nine months, according to data from the commerce bureau.
"Jointly building up our own brands should also be emphasized during the joint global foray of enterprises from Beijing and Hong Kong. Hong Kong's advantages in management, innovation and intellectual property protection will help the joint enterprises merge with overseas brands efficiently and set up our own research and operation centers abroad," Xu said.
Qu Jiazhi, head of HSBC Beijing branch, said that "the good progress of yuan internationalization development also helps the joint efforts to tap the international market by enterprises from Beijing and Hong Kong".
He added that many leading Beijing enterprises had focused their operations on overseas investments for many years mainly to reduce costs with their overseas purchases and overseas mergers and acquisitions.
Acting mayor Wang Anshun also urged Beijing enterprises to closely cooperate with Hong Kong partners to jointly explore international markets while calling for more Hong Kong investment into the capital's services sector.
"The capital is now moving toward a high-end services-driven economy, and thus offers great scope for Hong Kong enterprises. We will especially encourage small-and medium-enterprises to do business on the mainland and invite Hong Kong services businesses into mainland cities," said Gou Zhongwen, vice-mayor of Beijing.
The suburban Miyun county invited Hong Kong investors to participate in the building of a 6.94-square kilometer ecologic business district, which aims to attract businesses in tourism, healthcare and recreation.
Meanwhile, the capital's Tongzhou district is planning a 15-kilometer medical service base, called Beijing International Medical Center. It will be developed into a featured medical and health care service with private investment, according to Cui Zhicheng, vice-mayor of the district.
lijiabao@chinadailyhk.com
(HK Edition 11/06/2012 page4)
