Regional Integration Between Hong Kong and the Pearl

River Delta and the Prospects for Hong Kong

Leung Chun Yinghttp://www.cyleung.hk/

10 September 2010Prominent Speaker Series

The French Chamber

Shenzhen 30 Years Ago

Shenzhen today

Guangdong and HK Guangdong’s GDP surpassed Singapore in 1998,

Hong Kong in 2003 and Taiwan in 2007.

Guangdong’s GDP was roughly the same as HK’s in 2003; in 2009, it was nearly 3 times.

In 2015, the GDP’s of Guangzhou and Shenzhen are respectively estimated to be close to, or even surpass HK’s GDP.

Coverage of PRD’s Pearl River Delta (PRD): Nine cities in Guangdong

Province including Guangzhou, Shenzhen, Zhuhai, Dongguan, Foshan, Zhongshan, Huizhou, Jiangmen and Zhaoqing.

Greater PRD: The 9 cities plus Hong Kong and Macau.

Pan-PRD was conceptualized in 2003: 9 provinces Guangdong, Fujian, Jiangxi, Hunan, Guangxi, Hainan, Sichuan, Guizhou and Yunnan, plus the 2 SARs (9+2).

Pan-PRD

Sichuan

Guizhou

HunanJiangxi

Fujian

Guangdong

HKSAR

Macau

Hainan

GuangxiYunnan

Pan-PRD Region

Greater PRD

Guangzhou

HuizhouDongguan

Shenzhen

Hong Kong

Macau

Zhuhai

Zhongshan

Foshan

Zhaoqing

Jiangmen

Satellite Image of the Greater PRD

Positioning of the PRD Pearl River Delta Reform and Development Planning

Outline 2008-2020:

As the pioneer of reforms and the opening-up policy and an important economic hub of China, the Pearl River Delta has played a remarkable leading role and has an important strategic status in the overall effort of China to pursue economic and social development and carry on the reform and opening-up.

Coastal Petrochem, Steel and Shipbuilding projects in Guangdong

中国委内瑞拉石化项目

宝钢 1000万吨钢铁项目

中国科威特石化项目

龙穴岛造船项目

Automobile Manufacturing Industries in Guangdong

Infrastructure Coordination (1)Countrywide High-speed Railway

Beijing-Guangzhou-HK Line

Guangzhou-Guiyang-Chongqing Line

Shanghai-Shenzhen Coastal Line

Western Guangdong Coastal LineGuangzhou-Nanning-Kunming Line

Infrastructure Coordination (2)Greater PRD “One-hour Radius”

PRD Intercity High-speed Railway

PlanningBeijing-Guangzhou-Hong Kong High-speed Railway

Challenges

Changes in the world economy and the need to boost internal demand, the PRD needs to change its mode of development.

Policies include:

~ Upgrading the industries, developing heavy and chemical industries, high-tech industries and modern service industries

~ Inter-city integration in financial and transportation systems, and cooperation in urban planning:

3 Clusters of cities: Guangzhou-Foshan-Zhaoqing, Shenzhen-Dongguan-Huizhou and Zhuhai-Zhongshan-Jiangmen

~ Utilize the advanced systems of the HKSAR, further develop the PRD as the pioneer of the country’s reform and openning-up.

New Challenges to the Cooperation between Guangdong, HK and Macau Guangdong is less dependent on the SAR?

Coordinating the infrastructures. e.g. 5 international airports in the Greater PRD: HK, Guangzhou, Shenzhen, Macau, Zhuhai. Competition among the ports is also fierce.

Different legal, social and economic systems.

Flow of people, goods and capital.

Problems in Coordination of Infrastructures(1)Airspace conflicts in the PRD

Hong KongFlight Information Region

HK Int’l Airport

Shenzhen Baoan Int’l Airport

GuangzhouFlight Information Region

Direction of runway

Macau Int’l Airport

Zhuhai Int’l Airport

Guangzhou Baiyun Int’l Airport

The Way to Go for Hong Kong

To support the PRD with advanced professional services.

Further relaxation of policies to foster the “One-hour Radius” concept: cross-border vehicular traffic, co-location Inspection.

Supporting the PRD Industries: Maritime Services as an Example Besides shore-based port services, Maritime desk-

based services.

Maritime services include ship registration, management services, financing, sale and leasing, maritime insurance, legal services.

HK can service the ports in the PRD and develop into a major maritime center.

The Border Development Zone

港島中環

Thank You!