Hong Kong Economic and Trade Office, New York
Hosts Spring Reception to Welcome Year of the Ox

For more information, please contact:
Melissa Ng /David Hsieh at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315

February 4, 2009 - The Hong Kong Commissioner to the USA, Mr. Donald Tong, addressed a gathering of more than 350 guests at the Hong Kong Economic and Trade Office, New York annual Spring Reception held in New York City today.

Welcoming the Heritage Foundation and the Wall Street Journal ranking of Hong Kong as the world’s freest economy for the 15th consecutive year, Mr. Tong noted that Hong Kong has begun the year with an auspicious start.

“The ranking acknowledges Hong Kong’s commitment to free market principles and devotion to our common law tradition,” said Mr. Tong. “They are also good encouragement for us to maintain a free and open system, including open markets, free trade, low taxes, and a free flow of people, capital, ideas and information, in Hong Kong.”

Pointing out that Hong Kong’s economy has performed reasonably well in 2008, Mr. Tong, however, noted that, as an externally oriented economy, Hong Kong was not immune to the current global financial crisis and that negative economic growth and a rising unemployment rate in 2009 might be inevitable.

The Hong Kong Government has put in place a full range of measures to deal with these challenges, Mr. Tong remarked.

“Since the Asian financial crisis a decade ago, Hong Kong has reinforced its financial markets by improving risk management of banks and creating a more transparent regulatory system.

“To ease liquidity for the business community and bolster public confidence, our Government has guaranteed all bank deposits and established a mechanism to provide additional capital to banks, if requested, until at least 2010,” Mr. Tong said.

In addition, a US$12.8-billion loan guarantee scheme has been introduced for enterprises to help unfreeze credit and make available more resources for their operations.

Hong Kong and Mainland China have also entered into monetary cooperation to provide short-term liquidity support to Mainland operations of Hong Kong banks and the Hong Kong operations of Mainland banks in case of need.

The Hong Kong Government has also increased public expenditure largely in fast-tracking infrastructure projects so as to create more than 60,000 jobs this year, Public bodies and the private sector have also pledged to create several thousands of short-term jobs and internship places, targeting particularly fresh graduates from schools and universities.

Expressing confidence that these measures would help Hong Kong weather the storm, Mr. Tong said the Hong Kong Government had also taken some new initiatives to pave way for Hong Kong’s further development.

“We are working with the Mainland Government to further develop Renminbi business in Hong Kong. Hong Kong will be one of the pilot areas for transforming Renminbi into an international currency, with permission for qualified enterprises to settle their cross-border trade in yuan.”

“Recently we entered into agreement with the Guangdong Province to step up further cooperation in four priority areas, namely financial industry, service industry, infrastructural facilities and town planning as well as innovation and technology,” said Mr. Tong. “New infrastructure projects across the border including large-scale bridge and high-speed rail projects will also begin construction in the coming two years to cope with the increasing people and vehicular flow between Hong Kong and Southern China.”

To enhance Hong Kong’s attractiveness as a business and trade hub, Mr. Tong pointed out that Hong Kong has intensified global efforts to promote Hong Kong as a destination for “Meetings, Incentives, Conventions and Exhibitions” and also waived hotel accommodation tax.

Hong Kong will be building a 100-acres cultural hub in West Kowloon, which will feature 15 performing arts venues, outdoor performance piazza areas, a new concept museum, an exhibition centre and galleries.

“We have also waived our duty on wine lately with a view to developing Hong Kong into a regional hub for wine-related business,” added Mr. Tong.

Mr. Tong noted that Hong Kong and the US have long enjoyed closed ties. “The US tops the list of countries with regional headquarters and regional offices in Hong Kong, increasing by over 100% to some 900 in the past 10 years. This is a strong vote of confidence in our role as Asia’s leading business hub and a reliable partner for US businesses,” he said.

The Hong Kong Economic and Trade Offices in the US will be hosting a series of Spring Receptions in San Francisco (February 9), Boston (February 12), Chicago (February 18), Washington DC (February 24) and Atlanta (February 26) for key interlocutors in the academic, business, and media sectors.