[] [BTBBT Daily - 1/6]Two cities in agreement as Shanghai, HK get together

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SHANGHAI and Hong Kong signed four comprehensive cooperation agreements yesterday.

They will promote collaboration in commerce, culture, human resources and health care.

A proposal aimed at strengthening partnership in areas including finance, logistics, tourism, technology, education and social governance was also worked out at the second meeting of the Hong Kong/Shanghai Economic and Trade Cooperation Conference in Shanghai.

"The fast changing world offers new opportunities for both cities. It makes the need for closer cooperation all the more urgent," Shanghai Mayor Han Zheng said. "The two cities should deepen as well as expand cooperation under the framework of the Closer Economic Partnership Agreement."

Under the new proposal, Shanghai will encourage more Hong Kong firms to engage in Shanghai's service industry and advanced manufacturing, building up an amiable investment environment for Hong Kong companies to grow in the city.

Meanwhile, Hong Kong will offer more support for Shanghai firms to explore overseas markets, assisting them in legal services, auditing, exhibitions and innovation.

'Satisfactory outcome'

In the financial sector, Shanghai will encourage more local firms to be listed in Hong Kong and may allow Hong Kong banks to form partnerships with local lenders. The two cities will also seek more cooperation in the insurance industry, the proposal said.

"The meeting has had a very satisfactory outcome," said Hong Kong Chief Executive Donald Tsang.

He said the exchange-trade fund (ETF) of Hong Kong stocks is under preparation to be sold in the Shanghai Stock Exchange and he hoped it could be launched in a few months.

ETF is an investment fund traded on stock exchanges.

The first meeting of the conference was held in Hong Kong in 2003.

By late last year, Hong Kong had invested in about 19,000 projects in Shanghai, with an accumulated value of US$68.8 billion. Meanwhile, more than 30 Shanghai companies traded their shares in Hong Kong.