BEIJING, Jan. 24 -- Hong Kong's Closer Economic Partnership Arrangement (CEPA) with the Chinese mainland helped the territory export HK$1.14 billion (US$146 million) worth of goods made in Hong Kong to the mainland tariff free last year, Hong Kong¡¯s Chief Executive Tung Chee-hwa said.

    He said more than 660 Hong Kong-registered enterprises in sectors ranging from banking to logistics had been issued with Certificates of Hong Kong Service Supplier, which enable them to enter the mainland market much earlier and enjoy preferential treatment.

    Since last August, the application procedures for State-owned and private enterprises on the mainland to set up business in Hong Kong had also been greatly streamlined, Tung said.

    ¡°This has speeded up the pace of mainland enterprises investing in Hong Kong and fostered growth for both places,¡± he said.

    Meanwhile, 20 percent of companies assisted by InvestHK in setting up business in Hong Kong have indicated that the CEPA was one of the reasons leading to their decision to invest in the city, a Hong Kong official said.

    ¡°We consider the implementation of CEPA brings to Hong Kong companies more business opportunities in the mainland market, thereby increasing the attractiveness of Hong Kong to overseas investors,¡± Secretary for Commerce, Industry and Technology John Tsang told legislators.

    A Census and Statistics Survey found that as of June 1 last year, the city had 1,098 regional headquarters and 2,511 regional offices of companies incorporated outside Hong Kong, representing increases of 13.7 percent and 12 percent from a year earlier, and the largest percentage increases since 2001.

    Tsang said Hong Kong would continue to work to improve the business environment and publicize and uphold all existing favorable factors.

    InvestHK was set up by Hong Kong to assist corporations looking for direct investment opportunities in Hong Kong.

    Fifty-eight banks based in the Hong Kong, have opened branches on the Chinese mainland, and 38 have been allowed to do Chinese currency business.

    Hong Kong-based banks had become the largest group of overseas banks on the mainland, the China Banking Regulatory Commission (CBRC) said.

    The CBRC has attributed the flooding into the mainland of Hong Kong-based banks to the CEPA, a policy the Central Government adopted to boost Hong Kong¡¯s economy.

    The 58 Hong Kong banking operations include 45 branches, 10 subbranches, one financial company and two joint venture banks, the CBRC said.

    Hong Kong-based banks have also opened 24 representative offices on the mainland. Six Hong Kong banks have been allowed to do online businesses on the mainland.

    Under CEPA II, almost all the sectors that could be opened to Hong Kong will be opened in 2005. 

(Source: Shenzhen Daily/Agencies)