Attendees at the Third Liaison and Coordinating Meeting of Hong Kong, Guangdong and Macao on February 5 in Guangzhou reviewed the progress of those regions in implementing the Outline of the Plan for the Reform and Development of the Pearl River Delta (PRD) and decided on a future work plan. Hong Kong and Guangdong also discussed various cooperation initiatives at the meeting, reaching a consensus on a major future work plan.           

The meeting was jointly chaired by Hong Kong Chief Secretary for Administration, Henry Tang; the Vice-Governor of Guangdong Province, Wan Qingliang; and the Secretary for Economy and Finance of the Macao Special Administrative Region, Tam Pak Yuen. The Chief Secretary for Administration and the Vice-Governor of Guangdong Province also co-chaired the 14th Working Meeting of the Hong Kong/Guangdong Cooperation Joint Conference in Guangzhou earlier in the day.
           
Major initiatives in implementing the outline           

Good progress has been made in one of the major initiatives in implementing the outline in formulating the framework agreement on Hong Kong/Guangdong cooperation, with a view to complete the related work soon and to establish the basis for incorporating the relevant initiatives into the National 12th Five-Year Plan.           

The regional cooperation plan on Building a Quality Living Area aims to transform the PRD region into a sustainable, green and quality living area. Enhanced cooperation will be pursued in the areas of environment and conservation, low-carbon development, spatial organization, personnel exchange, transportation, and society and culture (including cultural exchange, education, social welfare and food safety), so as to improve the region’s living environment.            

Hong Kong, Guangdong and Macao are now actively taking forward the preparation of the regional cooperation plan. The compilation of the plan will be completed by the second quarter of 2010. The relevant content of the plan will be shared at the seminar on green living to be organized in Shanghai during the Shanghai Expo.           

The three sides are also actively engaged in the preparation of a regional cooperation plan on infrastructure construction, which is aimed at examining how to plan the provision of the various infrastructures for the linkage of the three places in a reasonable manner, so as to effectively foster their development. Through close liaison, the governments of Hong Kong, Guangdong and Macao have come to preliminary consensus on the coverage of the regional cooperation plan. Next on the agenda is the continuation of discussions among the three parties on the various details concerning the plan’s preparation.

Individual cooperation areas           

There are also substantive developments in other cooperation areas, including financial cooperation, tourism cooperation, infrastructural projects, cooperation in commerce and trade, regional development and town planning, and education cooperation.

Financial cooperation           

Regarding financial cooperation, the two Closer Economic Partnership Arrangement (CEPA) VI liberalization policies, namely the establishment of “cross-location” sub-branches for Hong Kong banks in Guangdong and joint-venture securities investment advisory companies, have both taken effect, and have been receiving positive responses.            

As at January 2010, the Guangdong China Banking Regulatory Commission has approved applications of four Hong Kong banks (HSBC, Hang Seng, Bank of East Asia, and Wing Hang) to set up a total of five sub-branches. In addition, the China Securities Regulatory Commission promulgated the administrative rules regarding the joint-venture securities investment advisory companies on January 6, 2010. Negotiations are underway for CEPA VII to seek more “early and pilot implementation” measures in Guangdong.           

Regarding the renminbi (RMB) trade settlement scheme — one of the major financial cooperation initiatives between Hong Kong and Guangdong — Hong Kong authorities are following up with relevant mainland China authorities to take the program forward and explore the development of RMB financing.           

Regarding the mutual access and usage of electronic money between Guangdong and Hong Kong, relevant enterprises and government departments in Shenzhen and Hong Kong have arrived at the consensus of launching the pilot scheme of the “Two-in-One Card” between Shenzhen and Hong Kong. The relevant stakeholders will embark on in-depth discussions toward a concrete implementation plan, with the aim of introducing the pilot scheme in one year's time. In addition, the financial authorities and regulators of both sides are discussing further exchanges of financial institutions, products, capital and talent.

Tourism cooperation           

On tourism cooperation, Hong Kong, Guangdong and Macao meet regularly to discuss issues of common concern, jointly attracting visitors from both within and outside the region. and the regions also cooperate in developing and promoting more multi-destination tourism products, so as to leverage complementary advantages to further promote tourism development in the regions.           

The Mainland implemented two facilitation measures last year for Shenzhen residents to visit Hong Kong. Response to the one-year multiple-entry Individual Visit (IV) endorsement to visit Hong Kong for Shenzhen permanent residents, implemented on April 1, 2009, is encouraging, with more than 1.47 million visits to Hong Kong under the scheme by end December 2009.            

According to a survey conducted by the Hong Kong Tourism Board, more than 73% of surveyed Shenzhen permanent residents indicated that they would visit Hong Kong more often because of this new program, thereby increasing the average frequency of their visits from 1.4 to 1.9 times per month.            

The measure to allow eligible non-Guangdong residents residing in Shenzhen to apply for IV endorsements in Shenzhen to visit Hong Kong was also implemented on December 15, 2009. At the same time, the period of stay for Macao visitors in Hong Kong has been extended from 14 days to 180 days starting on February 16, 2009. In cooperation with Macao, the Automated Passenger Clearance System for Hong Kong and Macao residents has been implemented since December 10 of last year. Up to December 31, 2009, nearly 40,000 Macao residents have enrolled in the Hong Kong e-Channel service.            

In the meantime, nearly 65,000 Hong Kong residents have also enrolled for Macao's automated clearance service. With the support of the governments of Guangdong and Macao, both will seek the Central authorities' consent to gradually extend the applicable area of these facilitation measures to the entire Guangdong Province. This will facilitate visits by more Mainland residents to Hong Kong, and promote movement of people between the two places, which is in line with the strategy of "supporting movement of people among Guangdong, Hong Kong and Macao," as set out in the Outline.

Infrastructural projects           

The State Council, at its executive meeting on October 28, 2009, approved the feasibility study report of the Hong Kong-Zhuhai-Macao Bridge Project, and the works in respect of the main bridge commenced on December 15, 2009. The parties concerned will continue to work closely together to ensure the timely completion of the bridge as well as the proper management and operation after its commissioning, so that the bridge can attain maximum economic benefits.           

The Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) will provide high-speed rail services between Hong Kong, Shenzhen and Guangzhou, as well as connect Hong Kong to the national high-speed rail network. The XRL plays an unparalleled role in strengthening the social and economic connection between Hong Kong and the Mainland, injecting momentum and creating new opportunities for mid- and long-term development in Hong Kong.           

The Finance Committee of the Legislative Council approved the funding application for the Hong Kong section of the XRL on January 16, 2010. The construction of the XRL has started and is expected to be completed in 2015.           

Hong Kong will continue to work closely with the Mainland to ensure smooth implementation of the XRL project. A coordinating group has been established between the Ministry of Railways of the Central Government and the Highways Department of the Hong Kong Special Administrative Region Government (HKSARG) to coordinate the design, construction, operation and maintenance of the Hong Kong and the Mainland sections.

Cooperation in commerce and trade           

With the support of the Central Government, under the CEPA framework as well as on the basis of Hong Kong/Guangdong cooperation, the two places have announced 34 measures to liberalize trade in services as well as facilitate trade and investment, for early and pilot implementation in Guangdong Province since 2008. These measures, implemented in phases since last year, helped promote the integration of service industries between the two places. Hong Kong will continue to work with Guangdong Province to expand the coverage of CEPA and, together with the province, will seek to put in place more measures for early and pilot implementation in the province. Both sides will also follow up the implementation of CEPA, with a view to maximizing the effectiveness of the announced measures.           

At the same time, the HKSARG has been maintaining close contact with the Guangdong authorities to facilitate Hong Kong enterprises operating in Guangdong to undergo upgrading and restructuring of their businesses. The Innovation and Technology Fund, the Research and Development Cash Rebate Scheme which will soon be launched, the Design-Business Collaboration Scheme, the SME Loan Guarantee Scheme and the Special Loan Guarantee Scheme of the HKSARG provide Hong Kong enterprises with funding and financing support. Furthermore, to facilitate Hong Kong enterprises in tapping the Mainland market, the HKSARG will continue to strengthen co-operation with the Guangdong authorities and organize more business matching events/trade fairs. The Hong Kong Trade Development Council and the Hong Kong Productivity Council also provide support services on upgrading, and restructuring and opening-up of markets.

Regional development and town planning           

For Qianhai development, Hong Kong and Shenzhen have formally established an expert group to follow up closely on the specific cooperation direction and content. The current consensus is for the Shenzhen Municipal Government to take on the leading role, and be responsible for the development and management of the Qianhai area, while the HKSARG will provide comments on the study and formulation of issues like development planning and policies.           

In addition, Hong Kong and Shenzhen have exchanged views on the Liantang/Heung Yuen Wai Boundary Control Point project regarding such aspects as work schedule, mode of cooperation on works projects linking Hong Kong and Shenzhen, and preparation for the design competition for the passenger terminal building.            

The joint study of the Hong Kong and Shenzhen Governments on the Lok Ma Chau Loop commenced in June 2009 and is anticipated to be completed by the end of 2011. Some facilities in the Loop can become operational by 2020 if the progress is smooth. It is tentatively scheduled that members of the public in Hong Kong and Shenzhen will be consulted on the Preliminary Outline Development Plan in the first half of 2010.           

The “Planning Study on the Coordinated Development of the Greater Pearl River Delta Townships,” which aimed to strengthen coordinated development in the Greater Pearl River Delta region, was completed, and the findings were promulgated in October last year. On the basis of the study recommendations, the three governments have commenced preparatory work for a joint study on the action plan for the Bay Area of the Pearl River Estuary. The action plan aims to examine feasible options to facilitate coordinated development of the Bay Area, with a view to making it a sustainable and livable area and developing the Greater Pearl River Delta into the most dynamic and internationally competitive city-region in the Asia-Pacific region. Detailed scope of the study is being worked out by the three governments, with a view to commencing the study as soon as possible for completion within this year.

Education cooperation           

Remarkable progress has been made in Hong Kong and Guangdong education cooperation and exchanges. In the higher education and vocational education sectors, cooperation initiatives include offering joint programs, academic exchanges and teacher training. In the basic education sector, apart from teacher training and exchange programs and the sister-school scheme, the Education Bureaux of Hong Kong and Shenzhen signed an agreement for the operation of Hong Kong children's classes in three Minban schools in Shenzhen. Looking ahead, Hong Kong and Guangdong will continue to explore education cooperation initiatives to provide more quality education training opportunities for students in Hong Kong and the Mainland.