The Dream Factory of China

　　Increased cooperation will mean getting wider access to markets throughout Asia

　　Margaret Fong Shun-man, a former tourism commissioner who took the helm at the Hong Kong Trade Development Council (HKTDC) on Oct 1 this year, sees greater cooperation with the mainland as vital to helping Hong Kong enterprises find more opportunities in Asia.

　　"Developed economies, such as North America, Europe and Japan, which are major markets for Hong Kong and the mainland, need time to recover from the economic growth slowdown or downturn," the council's first female executive director told China Daily.

　　"To find new prospects in the Asian market, it's wise for Hong Kong to cooperate with the mainland to take full advantage of both sides," she said.

　　Fong expects to further enhance cooperation with Shenzhen, Shanghai and Qingdao in Shandong province.

　　Since Hong Kong has certain advantages in protecting and trading intellectual properties, and we all know that Shenzhen offers a pool of scientific and technological research talents, Hong Kong will promote its advantages to attract high-tech firms to move their research and development units to the SAR, she said.

　　"We'll offer first-rate legal services on intellectual trading and property protection and mainland companies will be able to expand their markets abroad," Fong said.

　　It would also be an ideal and win-win situation as mainland high-tech firms can conduct research in a place where intellectual properties are well protected while being very close to their manufacturing base.

　　There are more chances to partner with Shanghai and Qingdao in the shipping industry since more shipowners have expanded their operations to the mainland over the years, Fong pointed out. And, since the two markets are skilled in shipbuilding while Hong Kong's advantage lies in providing shipping insurance and financing services, the HKTDC looks forward to a cooperative future with them, she said.

　　Besides, the HKTDC chief said she expected more extensive cooperation with Shanghai in promoting financial projects abroad as well as in driving the yuan's internationalization.

　　"Enjoying the first advantage as an offshore renminbi center, Hong Kong is playing different role from Shanghai - the onshore renminbi center," Fong said, "Amid the yuan's rapid internationalization, Hong Kong and Shanghai will coordinate on more aspects in future."

　　Fong does not regard Shanghai's gradual opening up of its capital market as a threat to Hong Kong's status in Asia.

　　Unique strengths 

　　"Competition from Shanghai free trade zone and Shenzhen's Qianhai center pushes us to distinguish our own unique strengths to walk on a long-term advancing route," Fong said. "Besides, the mainland's 'going out' policy, which encourages mainland private companies to invest abroad, is favorable to us."

　　Fong hopes that mainland companies will "go out" through Hong Kong, in other words, investing and expanding businesses abroad with Hong Kong's services support.

　　At present, the HKTDC has 44 agencies around the world, including 11 in Europe and 10 in Asia, gathering profiles on more than 11 million companies. The council brings back the database and expects to offer one-on-one business matching projects for Hong Kong as well as mainland companies.

　　The HKTDC has arranged visiting tours for mainland private companies to look for investment opportunities in the US and European countries, along with Hong Kong service suppliers, including law and accounting firms, to help mainland enterprises identify their investment and purchasing targets.

　　The HKTDC has been organizing major promotions abroad, such as "Think Asia, Think Hong Kong" event in Europe last month, showcasing Hong Kong's business advantages and encouraging companies in Europe to use the city's professional services platform to tap opportunities in Asia, particularly on the mainland.

　　More than 2,000 business leaders, government representatives, service suppliers and heads of small-and-medium enterprises (SMEs) from Europe, Hong Kong and the mainland who are interested in Asian affairs attended the events in Paris and Milan.

　　"It's essential for Hong Kong and mainland companies to investigate their target markets in person with the help of the HKTDC's worldwide network and over 35 Hong Kong business associations in 24 countries globally," Fong said.

　　Aside from financial services support, Fong pointed out that Hong Kong's innovative industry, such as architectural design, would be another prospective field in which the city could collaborate with the mainland.

　　Since the mainland's construction industry is quite mature and Hong Kong has more architectural designing talents, she believed there could be more chances for mainland construction firms to expand to the ASEAN region, such as Thailand and Burma, in cooperation with Hong Kong designers.

　　After drawing up a cooperation blueprint with the mainland, Fong also highlighted the mainland's importance to Hong Kong and global enterprises along with investors as a target market in the next 30 years.

　　"Given the flat growth of developed economies, Asia, especially the Chinese mainland, is becoming a paramount consumption market," she said.

　　Trade catalyst 

　　Although the mainland's economic slowdown may lead to a decline in the imports-and-exports trade, a continual increase in domestic demand, fueled by the urbanization process and the people's growing spending power, will act as a catalyst for foreign trade, Fong said, expressing her confidence in the mainland's consumption demand.

　　Besides, she believes the mainland's export surplus will be sustained with a change in the exporting product mix, which will boost Hong Kong's air transport business. "Original equipment manufacturers based on low value-added products will decline and high value-added products will account more for the export products structure," Fong said. "And, Hong Kong's air cargo and ship cargo transport, as the transfer point, will find a niche in the changing market." In addition to logistics services, Hong Kong could support in a broader range by offering first-rate supply chain management, financing platforms as well as accounting and legal services, she added.

　　As a commitment to creating business opportunities for Hong Kong SMEs, the new executive director said the HKTDC plans to build up more e-commerce platforms, allowing local enterprises to build up both online and offline operations.

　　"In the rapid growth of e-commerce, Hong Kong companies should adjust their business strategies in response to the new circumstances," Fong said. "Online business is essential for stepping into both the mainland and global markets."

　　The "Small Order" concept - an online business-to-business shopping platform established by the HKTDC - has changed into a trading platform from an enquiry base in April 2014. If the soft launch went smoothly, the platform would be officially launched next month.

　　"In the coming World SMEs Expo to be held by the HKTDC in December, we'll promote the online platform and try to offer more disbursement channels and logistics for their choice," Fong said. "More e-commerce platforms will be set up to enhance the capabilities and add value for SMEs through new developments in information technology."

　　Contact the writers at gladdy@chinadailyhk.com and sophiehe@chinadailyhk.com