Leung promises mainland links

Hong Kong Special Administrative Region (HKSAR) Chief Executive CY Leung Wednesday vowed to enhance the city's economic partnership with provinces and municipalities on the Chinese mainland and make use of the opportunities offered by the country's 12th Five-Year Plan.

Leung made the statement in his maiden policy address six months after taking office.

The chief executive said it was important for Hong Kong to take full advantage of the two main economic trends affecting Asia, specifically the rapid economic development of the mainland and the shifting global economic swing toward Asian countries.

Leung said he would focus efforts on maximizing the benefits from Hong Kong's unique free trade pact with the mainland, the Closer Economic Partnership Arrangement (CEPA).

"We have reached a consensus with the Ministry of Commerce on enhancing the existing mechanism for the implementation of CEPA by setting up an additional joint working group," Leung was quoted as saying.

The joint working group will provide targeted assistance to sectors that have encountered greater entry barriers, according to feedback from the sectors concerned, with an emphasis on assisting small- and medium-sized enterprises.

Commenting on the economic front of the address, Lau Pui-king, a Hong Kong deputy to the National People's Congress, told the Global Times Wednesday that the city is not moving fast enough in building itself into an offshore yuan business center, urging cooperation with the mainland.

"The central government has rolled out policies for Hong Kong. What we need to do is step up our pace," said Lau. "Yuan-based financial products could only be developed through cooperation with the mainland."

With regard to pregnant mainland women whose husbands are not Hong Kong residents and who wish to give birth in Hong Kong, Leung said he would maintain the "zero delivery quota" policy.

"The policy has borne fruit. Cases of non-local women in labor gate-crashing hospital emergency wards have come under control. Last month there were just 19 such cases," he said, adding that the government would seek to tackle the root of the problem by legal means.

Meanwhile, Leung also devoted much of the speech to the city's housing supply, the demand for which has grown partially due to growing interests by buyers from the mainland.

"As long as the housing shortage persists, we have no alternative but to restrict external demand and curb speculative activities," said Leung.