Yau: Momentous events have lifted HK’s gateway status
Hong Kong’s status as the gateway to the nation’s international trade sector has been reinforced by three momentous events and projects, including the mammoth China-led Belt and Road Initiative, Secretary for Commerce and Economic Development Edward Yau Tang-wah told a forum in Shanghai on Tuesday, held in conjunction with the inaugural China International Import Expo.
Hong Kong began acting as the gateway to the Chinese mainland when the nation’s historic reform and openingup kicked off four decades ago, with Hong Kong entrepreneurs becoming the first batch of investors to penetrate the mainland market, he said.
As China built up external trade with its accession to the World Trade Organization in 2001, the special administrative region consolidated its position as a trading center.
The BRI, mooted by President Xi Jinping, and the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area, Yau said, have further solidified Hong Kong’s role as a major platform for mainland companies to “go global”.
At present, about 15 percent of the goods imported by the mainland go through Hong Kong, he noted.
Yau said last week he saw immense promotion opportunities in the mainland market for Hong Kong enterprises as the number of applications for the SAR government’s SME Export Marketing Fund had gone up in August this year.
The fund offers financial aid to Hong Kong’s small and medium-sized enterprises to help them take part in export promotion activities and expand in markets beyond Hong Kong.
At Tuesday’s forum, support for financial services, as well as risk management, was highlighted, with Hong Kong professionals sharing their experiences in global trade.
Citing Hong Kong’s critical role in the country’s openingup process, Lin Guangming, chief corporate banking officer at Bank of China (Hong Kong), believed that the city’s mature financial service providers could make it more convenient for mainland cross-boundary enterprises in launching their new policies in recent years.
He referred to the Hong Kong Stock Exchange’s new initial public offering rules introduced this year that allow enterprises with a dual-class shareholding structure, as well as biotechnology companies that have yet to rake in revenue and companies already listed overseas and planning to seek a secondary listing, to go public in the SAR.
Other new strategies could also benefit businesses, said Lin, including stock connect, policies backing the setting up of corporate treasury centers, bond market development and the Hong Kong Monetary Authority’s recent launch of a blockchain-based trade finance platform.
He said such efficient services
and diversified products could attract more mainland companies to seek assistance in Hong Kong.
Lawrence Yeung — a member of the Greater China Legal Affairs Committee of the Law Society of Hong Kong — urged mainland enterprises to seek help from Hong Kong lawyers when dealing with risk management.
Intellectual property, Yeung said, is key to companies, but has been always omitted. He noted it should be written in contracts in detail when enterprises make deals as this would strengthen their future bargaining position.