Jiangxi-HK trade fair keeps getting bigger
In its 17th edition, the Jiangxi-HK Economic and Trade Cooperation Conference brings over 500 projects to town to attract Hong Kong and Shenzhen investors
Jiangxi province, dubbed the “red province” for its pioneering role in the Chinese revolution history, is looking to further promote its industrialization and modernization reforms. It is increasingly turning to Hong Kong for help in economic development.
For 17 years in a row, delegations from Jiangxi have come to the special administrative region to attract investors with its flagship annual business and trade fair.
The 2018 Jiangxi-Hong Kong Economic and Trade Cooperation Conference will be held from May 16 to 18 in the SAR — with over 500 projects. These will range from electronic information, LED lights manufacturing, automobiles and auto parts production and artificial intelligence, seeking investment worth around 1.2 trillion yuan ($189 billion).
Once considered an undeveloped hinterland, Jiangxi province has become a leader in the “rise of central China”. In 2017, the province recorded an 8.9-percent year-on-year GDP growth — joining the 2-trillionyuan league for the first time.
Because of its rich resources, favorable regulatory environment and improved corporate governance, today is an ideal time for Hong Kong investors to do business there.
Five special events will be rolled out at this year’s trade fair to enhance cooperation between Hong Kong and Jiangxi province. These include an investment roadshow for aerospace industry development; meetings with potential strategic investors for State-owned enterprise reforms; a discussion of joint participation in the Belt and Road Initiative and two other panels in tourism and innovation sectors.
As the country presses ahead with the B&R Initiative, alliance with Hong Kong to tap into the national strategy remains this year’s highlight.
“Jiangxi province has the experience and the expertise in bidding and winning overseas contracts,” Liu Qi, governor of Jiangxi province, said in a keynote speech at last year’s trade fair. “Our enterprises are looking forward to working with their Hong Kong counterparts to participate in the B&R projects, co-investing in major projects such as energy, infrastructure and agricultural development,” Liu added.
This year, the Jiangxi delegation will meet a group of potential investors and partners. These include the Hong Kong Trade Development Council, China Resources, China Merchants Group, China Taiping Insurance Group and the Li Ka Shing Foundation. Together, they will promote key projects.
The delegation is also seeking to benefit from Hong Kong’s strength as a financial center to help its local enterprises expand overseas.
Hong Kong has long been Jiangxi enterprises’ prime listing venue. Jiangxi Copper Co, the largest copper producer on the mainland, is dual-listed in Shanghai and Hong Kong; another leading industrial company in the region, Jiangxi Ganfeng Lithium, filed for a $1-billion IPO in the city in February.
Broader financial cooperation with Hong Kong in offshore bond issuance, trading finance and project financing is also high on the delegation’s agenda.
The Jiangxi government has been promoting mixed-ownership reform to energize Staterun entities, which has led to tangible results.
In 2009, Jiangxi Construction Group introduced Taiwan company United Integrated Services as a strategic investor — a move which proved to be very beneficial. Profits for the group had jumped 46-fold as of 2016, creating a bonanza for the group and its Taiwan strategic partners.
Jiangxi looks to replicate the success story with the participation of Hong Kong investors. The State-owned Assets Supervision and Administration Commission of Jiangxi Province will hold a meeting on May 17 at the Hong Kong Convention and Exhibition Centre to promote key projects of mixed-ownership reform.
The delegation will also meet with government heads, flagship companies, and key investors from Shenzhen to explore cooperation opportunities.
As mainland cities have been ramping up efforts to lure talents with varied preferential policies, the highlight of the meetup with Shenzhen delegations would revolve around bringing in Shenzhen’s premium talents in advanced manufacturing and high-tech sector to Jiangxi.
Last year’s Jiangxi-Hong Kong Economic and Trade Cooperation Conference had been fruitful. Among the 105 projects signed, 85 have completed registration, with 75 now being funded.
By the end of last year, there were 11,806 Hong Kong-funded companies in Jiangxi, with investments totaling $64.2 billion. Seventeen Jiangxi firms are listed in Hong Kong — raising over $1 billion in capital.