Event

Dialogue with Leader

Delegation

Diplomatic Knowledge Contest

Diplomatic Knowledge Contest

Delegation

2006 - 2010

World Expo 2010 Delegation

The Better Hong Kong Foundation did not miss the chance to witness the great success of the World Expo in Shanghai. On 22 October 2010, with assistance of the Hong Kong and Macao Affairs Office and the consulate offices in Hong Kong, the Foundation delegation toured 12 of the most popular country pavilions in one day. The delegation comprised of Trustee Tan Sri Dato’ David Chiu with his wife and daughter; Council Members Dr. Roy Chung, Mr. Thomas Woo with his wife, Mr. Joseph Yu, Mr. Albert Ip and Mr. Philip Ma; Executive Director Ms. Karen Tang and Communications Manager Ms. Jimmie Chow; and invited guest Mr. Patrick Ma, Director & General Manager, Tai Sang Bank Ltd. Pavilions visited: – Belgium-EU Pavilion – China Pavilion – French Pavilion – German Pavilion – Hong Kong Pavilion – Israel Pavilion – Italian Pavilion – Japan Pavilion – Macau Pavilion – Saudi Arabia Pavilion – Swiss Pavilion – United Kingdom Pavilion (L to R) Mr. Albert Ip, Mr. Thomas Woo and Mrs. Woo, Mr. Patrick Ma, Mr. Joseph Yu, Mr. Philip Ma, Dr. Roy Chung, Tan Sri Dato’ David Chiu and his family, Ms. Karen Tang and Mr. Chen Wei Inside the Italian Pavilion Lunch at the Belgian EU Pavilion

2010.10.22

2010 Annual U.S. Delegation Press Conference

The Better Hong Kong Foundation (“the Foundation”) completed its annual delegation to the United States from 12 to 19 May this year. A press conference was held on 3 June 2010 to brief members of the local media about the main issues dealt with during their stay in the U.S. Members of the delegation also shared their observations and experiences gained from the trip. Led by the Foundation’s Executive Committee Chairman and Chairman of Hang Lung Properties Ltd Mr. Ronnie Chan, members of this year’s delegation included three Foundation’s Council Members Dr. Roy Chung, Vice Chairman & Executive Director of Techtronic Industries Co Ltd, Ms. Winnie Ng, Director of the Kowloon Motor Bus Co. Ltd and Mr. Lau Ming Wai, Director of Chinese Estates Holdings Ltd, as well as the Foundation’s Executive Director Ms. Karen Tang. After introduced the delegates to the media, Ms. Karen Tang briefed the main purpose of the delegation which was to provide an annual update about Hong Kong’s present situation, to share our perspectives on the developments in China, and to exchange views with the interlocutors in the United States and gauge the temperature in the Beltway their views on the developments in Hong Kong, the Mainland China, U.S. and the China-US relationship. Mr. Ronnie Chan said the future of Hong Kong is certain under the humongous economic developments in China. The financial sector of Hong Kong will continue to thrive and play a significant role in the economic development of China. Mr. Chan also shared his views on the RMB valuation as it is a hot topic amongst the interlocutors in the U.S. Mr. Chan thought that the RMB might gradually appreciate and a wider range of exchange rate might be allowed. However, it will not be under the pressure of foreign country but rather because of the internal need for a more flexible and convertible currency in the long run. As agreed almost unanimously, the appreciation of RMB will not help narrow the trade deficit between the U.S. and China. Mr. Chan also expressed his confidence in the leadership of China and believed they would take appropriate measures to sustain the growth of the country while putting importance to a cordial China-US relationship. As a successful manufacturing industrialist with his own company set up in Hong Kong, Dr. Roy Chung used his experience as an example to illustrate the competitiveness of Hong Kong as it is a place where he could efficiently raise capital for the expansion of his company and easily draw talents from around the globe to form an international management team. He also added that its proximity to the Mainland provides Hong Kong with low cost labour and a huge potential internal market. As an international hub, Hong Kong facilitated the expansion of his company into the global market. Dr. Chung concurred that RMB is likely to appreciate gradually. However, it will not impair China’s economic development as China is dedicated to upgrade its industry and to develop its internal market. He thought that trade deficit between China and the U.S. is not a unilateral issue. It should be addressed by both countries. Ms. Winnie Ng commented that the meetings with leaders from the political and business sectors in U.S. during the mission were fruitful. With the strong economic growth and development, China is getting more attention from the world. Hong Kong with its special geographical advantage, its unique system of “One Country Two Systems” as well as its sound pillars is well positioned to capture the benefits in the course of the development of our nation and to continue to strive. The interlocutors in the U.S. recognized the competitiveness of Hong Kong which attributed to its unique administrative system. Mr. Lau Ming Wai commented that the Foundation’s delegation to the United States was a resounding success. “Through our dialogues with senior policymakers, think tanks, and other organizations, we learnt that the United States maintains a keen interest in Hong Kong. To them, Hong Kong has always been and continues to be a beacon of economic freedom and prosperity. Needless to say, China is at the forefront of everyone’s mind, especially in the midst of the Strategic and Economic Dialogue (S&ED) between the two countries. Hong Kong should continue to act as a bridge into China and be its showcase to the world. I am very pleased with the constructive dialogues that we have had in Washington, DC and I look forward to a similar trip next year.” Ms. Karen Tang said Hong Kong is in a good shape in the eyes of most U.S. interlocutors. There was not much concern over Hong Kong while the China-U.S. relation remained the key focus of our dialogues. The valuation of RMB and the indigenous innovation policy of China did create tension between the two countries. However, people are positive in the China-U.S. relationship and the direction that the U.S. Administration is driving at. Ms. Tang expressed her sincere gratitude to the delegates and all organisations visited for their support in making the delegation a great success. The Foundation would continue its dedication in enhancing greater international understanding between East and West by facilitating communications between Hong Kong, China and the international community. The Foundation would endeavour to organise this kind of visits for more exchanges and to promote better understanding to each other. (L to R) Dr. Roy Chung, Mr. Ronnie Chan, Ms. Karen Tang and Mr. Lau Ming Wai

2010.06.03

2010 Annual U.S. Delegation

2010.05.12 - 2010.05.19

Delegation to Guangzhou

With the release of the Outline of the Plan for the Reform and Development of the Pearl River Delta, strengthened cooperation within the region is believed to benefit the region, Hong Kong and the country as a whole. In view of this, the Better Hong Kong Foundation organized a delegation to Guangzhou on 16 – 17 July 2009, to explore opportunities for further cooperation within the region. The visit was supported by the Guangzhou Municipal Board for International Investment. During the 2-day trip, the delegation visited Zhujian New Town Central District, Tianhe Software Park Gaotang New Zone, the new Guangzhou railway terminus at Shibi, Nansha and Panyu Districts to learn more about the latest developments of the commercial, trade, technology and innovation, research and development activities in Guangzhou. Members of the delegation were impressed by the rapid developments of Guangzhou in recent years. They were interested in the future development plan of the city where numerous investment opportunities were provided. Led by the Foundation’s Executive Director Ms. Karen Tang, the delegation comprised: The Better Hong Kong Foundation– Dr. Roy Chung, Council Member Vice Chairman & Executive Director, Techtronic Industries Co Ltd – Mr. Thomas Woo, Council Member Executive Managing Director & General Manager, Hsin Kuang Restaurant (Holdings) Ltd – Ms. Judy Yu, Council Member President, Carsac Limited – Ms. Li Xuhua, Representative of Trustee Dr. Sumet Jiaravanon Special Assistant, Chia Tai Group – Mr. Edmond Yew, Representative of Trustee Mr. Peter Lam Senior Vice President, Lai Fung Holdings Ltd– Ms. Jimmie Chow, Communications Manager International Chambers of Commerce– Mr. David Whitwam, Chairman, The New Zealand Chamber of Commerce in Hong Kong Executive Director, Mace Consulting Ltd– Ms. Vicky Wong, China Committee Member, The French Chamber of Commerce & Industry Managing Consultant – Hong Kong & China, EPC Consulting Ltd Other Guests– Mr. K C Lung, Editor-in-Chief of Mingpao Weekly and Editorial Director of One Media Group– Mr. Kenneth Leung, Vice President – Corporate Affairs, Lai Sun Group– Mr. Clarence Ling, Director, Kwai Hung Group Detailed Itinerary16 July 2009– Visit Guangzhou Municipal Board for International Investment and have a brief introduction of new development and pillar industry in Guangzhou– Luncheon hosted by the Guangzhou Municipal Board for International Investment– Visit Zhujiang New Town Central Business District– Visit Taikoo Hui– Visit Tianhe Software Park Gaotang New Zone and Techpool Bio-Pharma Co Ltd– Dinner hosted by the Foundation 17 July 2009Visit Nansha District– Visit Toyota Automobile City– Visit Nansha IT park and Guangzhou HKUST Fok Ying Tung Research Institute– Luncheon hosted by People’s Government of Nansha District and have a brief introduction of the free trade port zone in NanshaVisit Panyu District– Visit Tian An Hi-tech Ecological Park– Visit the site of the new Guangzhou railway terminus– Visit the Startoon City Visit the office of the Guangzhou Municipal Board for International Investment A warm welcome by the Startoon City

2009.07.16 - 2009.07.17

EU Visitors Program: Brussels Visit

Report of the European Union Visitors Program — Visit to Brussels, 11 to 15 May 2009 By Karen TANGExecutive DirectorThe Better Hong Kong FoundationHong Kong Special Administrative Region, People’s Republic of China(15 June, 2009) I. IntroductionThe European Union Visitors Program (EUVP) is a very meaningful, professionally managed program. It has not only deepened my understanding of the European Union (EU), but also broadened my perspectives on global affairs, especially the multi-lateral relationships between China and EU member states. The one-to-one dialogues with the interlocutors, as well as interaction with people in Brussels in general, provided me an excellent opportunity to experience the spirit of embracement of diversity and collaboration. II. MeetingsAs the Executive Director of the Better Hong Kong Foundation, I was pleased to be introduced to people who were interested in the developments in China and Hong Kong, and in exploring collaboration and long term partnership with us. As mentioned in my Statement of Purpose for my visit, the establishment of the EU is of epoch-making significance. Its experience of collating and embracing the diversity among member states and to work together as an entity is worthwhile learning. I asked to understand the role of NGOs, think tanks and media in the decision making, consultation and communications process; and their relation with the European Commission and/or its sub-committees. Meetings were arranged and discussions were made possible in the following areas: A. European Union and Media & Communications– Mr. Ralph PINE, Editorial Coordinator of the Press Room Unit in the Directorate General for Communication of the European Parliament: Mr. Pine explained to me the structure of the EU, interaction with media, using of Internet and intranet to communicate among different units, the importance of neutrality on handling media enquiries and message articulation, their upcoming priority (raising the awareness and voting rate of the Parliament election), and demonstrating to me the election campaign videos and materials. – Mr. Klaus HULLMANN, Administrator responsible for Visits at the Committee of the Regions: Mr. Hullmann explained his scope of work and the importance of the consultative role of the Committee of the Regions and the implication of this participative process for the whole decision making process. B. EU and China & Hong Kong– H.E. Mr. SONG Zhe, Ambassador Extraordinary and Plenipotentiary, Head of the Chinese Mission to the European Union; Mr. WANG Yajun, Minister-Counsellor; Mr. Wang Xining, Counsellor of China’s Mission: The China’s Mission is playing an ever-increasing important role interacting with the EU. More dialogues between China and the EU will help build greater understanding, and thus more collaboration. Hong Kong can play a role to enhance such interaction and dialogue. – Ms. Hinny LAM, Deputy Representative from the Hong Kong Economic and Trade Office (HKETO); and Ms. Ada YEUNG: Hong Kong is one of the most cosmopolitan cities in the world, its system and developments are comparatively familiar to people in the EU. The HKETO is very functional in facilitating understanding, especially on the latest developments on economy and trade as well as developments across the border in the Mainland. – Mr. Vito BORRELLI, Programme Manager, Coordinator of Erasmus Mundus in the Unit for Cooperation and International Programmes in the Directorate General for Education and Culture of the European Commission: Mr. Borrelli shared with me the spirit and scope of the Programme. However, neither the universities in Hong Kong nor students in Hong Kong has been engaged in the Programme although many universities and students in China, especially those in Beijing and in Shanghai, are being engaged. Mr. Borrelli has been very kind to send a follow up email to Ms. Maria Castillo-Fernandez, Head of EU Commissioner’s Office in Hong Kong, and me. I hope that Hong Kong will be included in the program in the future. – Ms. Andrea FENNESZ, Policy Desk Officer in the Unit for Trade Relations with the Far East in the Directorate General for Trade of the European Commission: Ms. Fennesz is familiar with trade in Hong Kong and that in the region but is watching closely the compliance of CEPA under the WTO principles. Although she had the opportunity to visit China, including Taiwan, she did not have the chance to visit Hong Kong. I hope she will visit Hong Kong on her next trip to China. – Mr. Asad BEG, Desk Officer of China and Mongolia, China, Hong Kong, Macao, Taiwan, Mongolia in the Directorate General for External Relations in the European Commission: Though Mr. Beg is new to the post, he shared with me their latest Country Strategy Paper (CSP) for China 2007-2013 and Multi-Indicative Programme MIP 2007-2010. We shared our views on how cooperation and assistance could be offered in a more effective way by enhancing the understanding of both sides and by sharing the philosophy behind. – Mr. Francesco PRESUTTI, Administrator in the Unit for the Coordination of the Political and Security Committee in the Directorate General for External Economic Relations, Politico-Military Affairs of the Council of the European Union: Though the meeting with Mr. Presutti was brief, he was keen to know my view on the political and economic developments in Hong Kong and China. – Ms. Andrea SUBHAN, Administrator in the Directorate for External Relations of the European Economic and Social Committee: Ms. Subhan was about to depart for a trip to Hong Kong and China the day after our meeting. The EU Commissioner’s Office in Hong Kong had organized a round table meeting for the delegation during their visit in Hong Kong. I was able to give Ms. Subhan a brief orientation on the social and economic developments in Hong Kong. – Mr. Tim BODEN, Administrator in the Directorate for Inter-Parliamentary Delegations for non-European countries of the European Parliament: Mr. Boden has been in the position for several years. He met with several EUVP visitors from Hong Kong, Macau and China and has led several delegations to China. My impression was that the dialogues have been focusing on the few controversial political issues which did not facilitate true understanding and communication for both sides. – Mr. Tom ROE, ASEM Counsellor, Asia Directorate, External Relations, European Commission: I arranged a meeting myself with Mr. Roe. He is the ex-head of the EU Commissioner’s Office in HK. It was enlightening to learn of his role in facilitating better understanding of Asia in the EU. C. NGOs and Think Tanks– Mr. Jonathan HOLSLAG, Head of Research, Expert at the EU-China Academic Network (ECAN), Brussels Institute of Contemporary China Studies (BICCS): I arranged the meeting with Mr. Holslag via an introduction. Mr. Holslag has been very active in promoting academic dialogue and study on EU-China relations. While the subject itself is becoming more important and deserves more study, there is not much academic expertise on the subject in Brussels or in the EU. Both Mr. Holslag and I are exploring collaboration in promoting the subject studies to academia in Brussels and in the EU. – Mr. Dick GUPWELL, Secretary General and Acting Director of the European Institute for Asian Studies – E.I.A.S.: Mr. Gupwell is an expert in India studies while his Singaporean colleague studies China. He was keen to know the work of the Better Hong Kong Foundation and would be pleased to explore collaboration. – Mr. Koen SEGERS of the Confucius Institute in Brussels: The Confucius Institute in Brussels is part of an international network of Confucius Institutes aimed at the diffusion and promotion of Chinese language and culture. It was co-founded by the Chinese Government, in partnership with the Belgium-China Association’s China Academy. I was introduced to two Chinese student interns Mr. XU Enhao and Ms. XUI Lian. They were keen to support the Institute not only to earn their academic credit but also to help promote Chinese culture. Although the location and the physical condition of the Institute are not favorable, more and more people are interested in learning about Chinese language and culture. D. Others — Belgian Federal Parliament– Mr. Jan DELTOUR, Director and Mr. John STEVENS, Adviser both of the Table Office of the House of Representatives of the Belgian Federal Parliament: The tour to the Belgian Parliament was impressive. I explained to the gentlemen the political system, election system and briefly the related chapter of the Basic Law in Hong Kong. We shared issues of some similarity that the Parliament in Belgium and the Legislative Council in Hong Kong were facing; and that the positioning of Belgium and of Hong Kong in a globalized economy was also of similar concern. III. ConclusionsThe model of European Union is epoch-making and embraces diversity among member states. While allowing flexibility to individual members on certain issues, there are important issues centrally coordinated and decided upon and to which member states are obliged. With this, the EU as a whole has the highest global GDP and should have a comparable weight and strategic influence in the world economy. The European model of economic development, especially during the financial crisis, also proves to be more robust and should be studied. As an increasingly important country and entity in the world, China and the EU should develop more dialogue and collaboration, not only among government organizations but also among the civic communities, on issues which should go beyond political subjects. The EU can be a good reference for China. Under the one country two systems and being a world city with East and West culture, Hong Kong can definitely play a role in facilitating communication and collaboration between China and the EU. IV. ComplimentsLast but not the least, I would like to thank and congratulate the EUVP Secretariat for their professionalism and success in managing a very good program for me that was flexible and yet very carefully planned. The itinerary was rightly spaced with clear instructions and reminders. The hotel (Hotel SILKEN BERLAYMONT BRUSSELS, Boulevard Charlemagne, 11-19, 1000 Brussels) was comfortable and closely located to the meeting venues. If there is any room for improvement, I would suggest providing the participant a draft itinerary before departure for the best preparation. I would like to take this opportunity to render my salutation and gratitude to Mr. Ed VAN KOOLWIJK, Head of the EUVP Secretariat and his team, especially Ms. Afërdita ERTEKIN-JAHJA, EUVP Programme Organiser, for their success and for their kind assistance in making my trip fruitful and enjoyable. — END — Meeting with H.E. Mr. Song Zhe, Ambassador Extraordinary and Plenipotentiary, Head of the Chinese Mission to the European Union Meeting with Mr. Wang Yajun, Minister-Counsellor (right) and Mr. Wang Xining, Counsellor (left) of China’s Mission to the European Union

2009.05.11 - 2009.05.15

2009 Annual U.S. Delegation Press Conference

The Better Hong Kong Foundation (“the Foundation”) organised its annual delegation to the United States from 23 to 29 April this year. Led by the Foundation’s Executive Director Ms. Karen Tang, members of this year’s delegation included guest speaker Mr. Antony Leung, Chairman of Greater China, the Blackstone Group (HK) Ltd and former Financial Secretary of HKSAR; and two Foundation’s Council Members Ms. Winnie Ng, Director of the Kowloon Motor Bus Co. Ltd and Mr. Albert Ip, International Advisory Council Asia of Washington University, St. Louis. A press conference was held on 5 May 2009 to brief members of the local media about the main issues dealt with during their stay in the U.S. Ms. Karen Tang, Mr. Antony Leung and Mr. Albert Ip shared their observations and experiences gained from the trip on the occasion. Ms. Karen Tang said, “The main purpose of the delegation was to provide an annual update about Hong Kong’s present situation, to share our perspectives on the developments in China, and to exchange views with the interlocutors in the United States and gauge the temperature in the Beltway their views on the developments in Hong Kong, China, U.S. and the China-US relationship especially under the new Obama administration.” Mr. Antony Leung said the interlocutors in U.S. basically understood and agreed that the proximity to China, low tax rate and simple tax regime, legal and regulatory systems that predictable and consistent, and accepted by international investors, freedom of information, safe and convenient place to life and work are fundamental competitive edges of Hong Kong. Regarding the announcement of Shanghai to be an international financial center in 2020, he expressed that with such a huge size of economy, it is sufficient for China to have more than one international financial center. The U.S. also has a few financial centers such as New York, Chicago and San Francisco. Being an international financial center, Hong Kong should further strengthen its existing advantages, strive to be the global offshore Renminbi center and regional center for derivatives, develop its business in Renminbi bonds as well as other well-regulated financial instruments. Hong Kong and Shanghai could achieve a win-win situation. However, to have a long-term and sustainable development, it is crucial for Hong Kong to attract and retain more talents around the world to work and live here. Moreover, Mr. Leung proactively explained to the U.S. that Hong Kong is not a “tax haven” and expressed our concerns about the possible rise of protectionism (no matter on trade, human resources, capital flow, etc) that may caused by further downturn of the world economy. The U.S. promised that they would keep a close watch on the development of these issues. Ms. Karen Tang concurred that there was not much concern over Hong Kong. People in the U.S. were more concerned of their local economic issues and how to better engage China, hence there was much more interest in knowing if and how China can maintain 8% GDP growth and the impact of its economic stimulus package. “However, we do share our belief that with the increasing importance of China as a global economic powerhouse, the proximity of Hong Kong to the Mainland and the strong support from the Central Authority to Hong Kong, Hong Kong definitely can benefit and can rebound faster.”, said Miss Tang. Overall, people are positive in the China-US relationship and the direction that the new U.S. Administration is driving at. Mr. Albert Ip emphasized the importance of the quality of human capital to the success of Hong Kong. He thought that it was crucial for university faculty members and students to have strong international skills and exposure, hence there should be more joint programs and exchanges arranged between universities in the U.S. and Hong Kong. He quoted the example of a joint program between Hong Kong Polytechnic University and Washington University in St. Louis. “The world is getting smaller, and there is much more interaction and interdependency”, said Mr. Ip. Universities in Hong Kong aim to get the best talents from the world, including the recently hired Chancellors at the Hong Kong University of Science and Technology and Hong Kong Polytechnic University who came from the U.S., where they held important positions at prestigious universities before the appointments. Having leaders with western academic background and experience will further build on the reputation and quality of local universities in Hong Kong. Ms. Winnie Ng commented that the meetings with leaders from the political and business sectors in U.S. during the mission and the participation in activities of the Committee of 100 and Hong Kong-United State Business Council held concurrently in Washington D.C. have provided excellent platforms for ideas exchange and communications. She was gratified to see that the Foundation played a contributory role as a non-government diplomat to promote mutual understanding between Hong Kong, China and U.S. Around 20 journalists attending the press conference The Foundation’s Executive Director Ms. Karen Tang giving a brief introduction on the delegation’s program (L to R) Mr. Antony Leung (Guest speaker of the delegation), Ms. Karen Tang (Executive Director of the Foundation) and Mr. Albert Ip (Council Member of the Foundation)

2009.05.05

2009 Annual U.S. Delegation

The Better Hong Kong Foundation (“the Foundation”) organised its annual delegation to the United States from 23 to 29 April this year. A press conference was also held on 5 May 2009 to brief members of the local media about the main issues dealt with during their stay in the U.S. Members of the delegation also shared their observations and experiences gained from the trip. Led by the Foundation’s Executive Director Miss Karen Tang, members of this year’s delegation included guest speaker Mr. Antony Leung, Chairman of Greater China, the Blackstone Group (HK) Ltd and former Financial Secretary of HKSAR; and two Foundation’s Council Members Ms. Winnie Ng, Director of the Kowloon Motor Bus Co. Ltd and Mr. Albert Ip, International Advisory Council Asia of Washington University, St. Louis. The main purpose of the delegation was to provide an annual update about Hong Kong’s present situation, to share our perspectives on the developments in China, and to exchange views with the interlocutors in the United States and gauge the temperature in the Beltway their views on the developments in Hong Kong, China, U.S. and the China-US relationship especially under the new Obama administration.” The delegation visited financial institutions (Morgan Stanley and HSBC); rating agency (Standard & Poor’s) and think tanks in New York (National Committee on US-China Relations, Council on Foreign Affairs); the Executive Branch (U.S. Department of State, U.S. Department of Commerce International Trade Administration and National Security Council); the Legislative Branch (Senator, Congressman and staffers); think tanks inside the Beltway (Brookings Institution, CATO Institute, Heritage Foundation, US-Asia Institute); and the Hong Kong Economic and Trade Office in Washington DC. The group met with the Senator Jim Webb, Member Senate of Foreign Relations Committee and the Congressman Rick Larsen, Co-Chair of U.S.-China Working Group to brief them on the recent developments in Hong Kong. During the mission in New York, Mr. Antony Leung gave a speech entitled “China and Hong Kong: Post Financial Tsunami” at the luncheon hosted by the Asia Society. Over hundred people attended. (The speech could be downloaded from the Foundation’s website.) In Washington D.C., Mr Leung made another speech at the Fund for American Studies, sharing his views on the China and Hong Kong’s Economic Outlook. Mr Leung is also Chair of the Panel on the session of “Working Towards Economic Recovery and International Balance” at the Harvard Conference – Power and Restraint: Perspectives on the U.S. and Chinese Relationship. The delegation were invited to luncheons and dinners hosted by the Permanent Mission of the PRC to the UN (Ambassador Zhang Yesui), the Consulate-General of the People’s Republic of China in New York (Ambassador Peng Keyu), the Embassy of PRC in the US (Minister and DCM Xie Fung), and the Hong Kong-United States Business Council. The Foundation would continue its dedication in enhancing greater international understanding between East and West by facilitating communications between Hong Kong, China and the international community. The Foundation would endeavour to organise this kind of visits for more exchanges and to promote better understanding to each other. Itinerary New York 23 April 2009 (Thursday) Morgan Stanley– Mr. Richard Berner, Managing Director, Co-Head of Global Economics and Chief U.S. Economist – Mr. David Lew, Vice President, Morgan Stanley Asia Society Speaking Luncheon: “China and Hong Kong: Post Financial Tsunami” by Mr. Antony Leung “Hong Kong, the once thriving Asian economy is facing a number of challenges including a deep recession in the West, a slowdown in the Chinese economy, and a possible rivalry for its position as an international financial center from Shanghai. Will its hinterland, the mainland of China achieve 8% GDP growth in 2009? Will Shanghai take over Hong Kong’s position, now that the State Council of China has clearly defined Shanghai’s role as an international financial center? Antony Leung, a Senior Managing Director at the Blackstone Group, and former Financial Secretary of Hong Kong will give his view on these and other issues about Hong Kong and China.” National Committee on U.S. China Relations – Mr. Stephen Orlins, President– Ms. Jan Berris, Vice President 30th Anniversary Gala of US-Asia Institute 24 April 2009 (Friday) Standard and Poor’s – Mr. Paul Coughlin, Executive Managing Director of Corporate & Government Ratings– Mr. Michael Privitera, Vice President of Public Affairs – Ms. Beth Ann Bovino, Senior Economist HSBC – Mr. Paul Lawrence, CEO, HSBC Bank USA– Mr. Marlon Young, CEO, HSBC Bank Americas– Mr. Jose-Luis Guerrero, Head of Global Markets, Americas– Mr. Lawrence Dyer, MD, US Interest Rate Strategist Luncheon hosted by the Permanent Mission of P.R. China to the United Nations– Ambassador Zhang Yesui, China’s Permanent Representative to the United Nations – Mr. Li Kexin, Counsellor– Mr. Qi Qianjin, Counsellor, Chief of Division of Policy Analysis– Mr. Xu Jian, Councsellor, Deputy Chief of Division of Policy Analysis Council on Foreign Affairs – Dr. Elizabeth Economy, Director of Asia Studies– Mr. Adam Segal, Fellow for China Studies Dinner hosted by the Consulate-General of the People’s Republic of China in New York– Ambassador Peng Keyu, Consul General– Mr. Zhang Haitao, Consul Washington DC 27 April 2009 (Monday) CATO Institute– Dr. William A. Niskanen, Chairman Emeritus and Distinguished Senior Economist U.S. Department of State – Mr. David Shear, Director, Office of Chinese and Mongolian Affairs– Ms. Amy Nicodemus, Foreign Affairs Officer, Office of Chinese and Mongolian Affairs Luncheon hosted by the Embassy of the People’s Republic of China in the U.S.A– Minister & DCM Xie Feng – Mr. Jia Xiudong, Counselor for Political Affairs– Ms. Fang Hong, First Secretary The Heritage Foundation – Dr. Derek Scissors, Asia Economics Research Fellow– Mr. Walter Lohman, Director, Asian Studies Center – Mr. Nicholas Hamisevicz, Research Assistant, Asian Studies Center Hong Kong Economic and Trade Office – Mr. Donald Tong, Hong Kong Commissioner, USA – Mr. Eddie Mak, Director-General 28 April 2009 (Tuesday) Brookings Institution – Dr. Richard C. Bush, Director, Center for Northeast Asian Policy Studies– Mr. Kenneth Lieberthal, Visiting Fellow, John L Thornton China Center, Foreign Policy National Security Council– Mr. Paul Haenle, Director for China, Taiwan and Mongolia, East Asian Affairs Harvard Conference – Power and Restraint: Perspectives on the US and Chinese Relationship– Mr. Antony Leung, Chair of “Working Towards Economic Recovery and International Balance” panel 29 April 2009 (Wednesday) Capitol Hill Breakfast Forum with Key Congressional advisors– Mr. Benjamin Wu, President, US-Asia Institute– Ms. Mary Sue Bissell, Vice President and Executive Director, US-Asia Institute– Mr. Robert Jordan, Senior Advisor, US-Asia Institute– Mr. Wayne Morrison, Specialist in Asian Trade and Finance, Foreign Affairs, Defense and Trade Division, Congressional Research Service– Mr. Andrew Green, Legislative Assistant, Senator Jeff Merkley– Mr. Jonathan Weston, Senior Policy Advisor, Congressman Brian Higgins– Mr. Kenneth Nealy, Senior Appropriations Counsel, Congresswoman Barbara Lee– Mr. Andrew Christianson, Legislative Assistant, Congressman Erik Paulsen U.S. Department of Commerce International Trade Administration – Ms. Michelle O’Neill, Acting Under Secretary for International Trade– Ms. Nicole Melcher, Director, Office of the China Economic Area– Mr. Thomas Dycus, International Trade Specialist, Office of the China Economic Area The Fund for American Studies Speaking Luncheon: “China and Hong Kong: Post Financial Tsunami” by Mr. Antony Leung – Mr. Roger Ream, President– Mr. Edward J. Turner, Vice President, Development– Ms. Michelle Jeffress, Director, International Programs– Ms. Kelsey Strampe, Manager, Asia Institute for Political Economy The Honorable Jim Webb, U.S. Senator, Member Senate Foreign Relations Committee The Honorable Rick Larsen, U.S. Congressman, Co-Chair, U.S.-China Working Group Welcoming Reception and Dinner of Hong Kong-United States Business Council Bio of Delegates Mr. Antony LEUNGChairman, Greater ChinaThe Blackstone Group (HK) Limited Antony Leung is a Senior Managing Director of The Blackstone Group, and Chairman of Blackstone Greater China. He oversees all of Blackstone’s businesses in Asia, including private equity, real estate and corporate advisory. He is based in Hong Kong. Before joining Blackstone, Mr. Leung was the Financial Secretary of Hong Kong from 2001 to 2003. Prior to his appointment as Hong Kong’s Financial Secretary, Mr. Leung had 28 years of financial services experience. He was the Chairman of Asia for JP Morgan Chase based in Hong Kong. Before that he worked for Citigroup in Hong Kong, Singapore, Manila and New York for 23 years in various positions including Country Corporate Officer for China and Hong Kong, Regional Treasurer, Division Head of Investment Banking for North Asia, South West Asia and Head of Private Banking for Asia. In public service, other than his tenure as Financial Secretary, he has been a non-official member of the Executive Council in Hong Kong, Chairman of Education Commission, Chairman of University Grants Committee, member of the Exchange Fund Advisory Committee, board member of the Airport Authority, Hong Kong Futures Exchange, the Community Chest, member of the Preparatory Committee of Hong Kong Special Administration Region, Election Committee, and a Hong Kong Affairs Advisor. He is currently independent director of the Industrial and Commercial Bank of China, vice chairman of the China Bluestar Group, and chairman of Heifer International in Hong Kong. His past directorship included independent director of China Mobile (HK) Limited, American International Assurance Co. Ltd, member of international advisory board of China Development Bank and European Advisory Group. Mr. Leung graduated from the University of Hong Kong in 1973, and attended Harvard Business School’s Program for Management Development and Advanced Management Program. For his public service in Hong Kong, he was awarded the Gold Bauhinia Star and an Officer of the Most Excellent Order of the British Empire. He was conferred an honorary Doctor of Law by the Hong Kong University of Science and Technology. Miss Karen TANGExecutive DirectorThe Better Hong Kong Foundation(Leader of the delegation) Miss Karen Tang was appointed as the Executive Director of the Better Hong Kong Foundation on June 1, 2006. Miss Tang holds a Bachelor of Arts degree in Social Science and a Master of Arts degree in Public Administration. Upon completing her undergraduate studies, she joined the Basic Law Consultative Committee of the Hong Kong Special Administrative Region as the Administration Officer responsible for the secretarial work of the Sub-group on Political Structure. After completing the consultation work, she joined the Ming Pao Group, a Hong Kong based media group. During her tenure with the Group, she was appointed to a number of posts, including the Personal Assistant to the Chairman, Administration and Personnel Manager, Business Development Manager, Deputy General Manager of Magazines Division, and General Manager of Yazhou Zhoukan (a regional Chinese Asiaweek). Miss Tang continued to develop her career in the media and multimedia industries, and has served as Deputy General Manager of the Chinese Television Network, General Manager of the Hongkong Telecom IMS (Interactive Multimedia Services), Director of Multimedia Services and Director of E-commerce under the Hutchison Whampoa Group. She worked for the Tung Chee Hwa Election Office in 2001 as the Director of Administration Division, responsible for the coordination of the election campaign. Prior to joining the Foundation, she was the Director of Communications of the University of Hong Kong, and reported to the Vice-Chancellor. Miss Tang is now Council Member of the Lingnan University, Member of the Committee on Performing Arts, Council Member of the Hong Kong Macau Research Centre of the Shanghai Academy of Social Science, and Invest Guangzhou International Advisor. Miss Winnie NG BA, MBA (Chicago), MPA (Harvard)Director, Kowloon Motor Bus Co LtdCouncil Member, The Better Hong Kong Foundation Ms Winnie NG is Founder and Deputy Chairman of RoadShow Holdings, Director of Kowloon Motor Bus (“KMB”) and Transport International Holdings. She won the Yazhou Zhoukan Young Chinese Entrepreneur Award in 2003, was named one of China’s One Hundred Outstanding Women Entrepreneurs and a Mason Fellow of Harvard University in 2006, and was the Caring Heart Award recipient in 2009. She has successfully revamped and rejuvenated KMB’s image, and has positioned KMB as a powerful out-of-home media sales tool in Hong Kong by raising the profiles of bus body, bus shelter, and in-bus advertising. Her introduction of the brand new champagne gold bus livery revitalizes and energizes the more than 75 year-old brand. She founded and spearheaded listing of RoadShow (stock code: 0888), which business model has been adopted by many companies in HK, China and over the world. Active in public service, she is Director of Bauhinia Foundation Research Centre; Director of HK Cyberport; Director of HK Sports Institute; Council Member of Better HK Foundation; Executive Committee Member of HK Council of Social Service; Director of Agency for Volunteer Service; PR Committee Member of Community Chest; Hospital Governing Committee Member of Queen Elizabeth Hospital, and Advisory Board Member of Habitat for Humanity China. Ms Ng is also Vice Chairman of Council of China’s Foreign Trade, China Council for Promotion of International Trade and Vice Board Chairman of Council of World Market, Shanghai Foreign Economic Relation & Trade Commission. She holds an MBA degree from the University of Chicago and an MPA degree from Harvard University. Mr. Albert IP International Advisory Council Asia, Washington University, St. LouisCouncil Member, The Better Hong Kong Foundation Albert Ip is an international banking and real estate professional, with 32 years of corporate banking, real estate finance, financial institutions, transactional banking and wealth management experiences, of which 22 years are in Asia and 10 years in the U.S. (Citigroup, Wells Fargo, First National Bank of Chicago and Merrill Lynch). He was named Managing Director of Citigroup in 2003. Whilst at Citigroup, he was on the committee of Corporate and Investment Bank – Hong Kong as well as Asia Pacific & Middle East Global Wealth Management. Albert joined Merrill Lynch (Asia Pacific) as Managing Director of Investments in 3/08. Albert believes in giving back to the community. He was Finance Committee Member of the Community Chest in Hong Kong. Albert participates in mentor/mentee-ship programs in local universities and taught Personal Economics in high schools. He participates in recruiting freshmen for Washington University, Carnegie-Mellon University and Cornell University and is selection committee member of the Danforth Scholar program at Washington University. Albert was guest speaker at Shantou University (China), Lingnan University and Hong Kong University (Hong Kong). He is currently Advisory Board Member of Lingnan University, Business Studies, International Advisory Council Asia of Washington University, St. Louis and Council Member of The Better Hong Kong Foundation. Albert was Independent Non-Executive Director and Audit Committee Member of Hopewell Holdings Limited and Hopewell Highway Infrastructure Limited, both listed companies in Hong Kong. He was lecturer in University of Pittsburgh’s part-time MBA program. Albert holds a B.S. degree in Applied Mathematics & Computer Science (Final Honor) at Washington University, St. Louis, M.S. degree in Applied Mathematics at Cornell University and M.S. in Accounting & Finance at Carnegie-Mellon University. He received full scholarships and fellowships from all 3 universities. Albert is a U.S. citizen and is married with 1 daughter. Meeting with Morgan Stanley Asia Society Speaking Luncheon: “China and Hong Kong – Post Financial Tsunami” by Mr. Antony Leung Meeting with National Committee on U.S. China Relations

2009.04.23 - 2009.04.29

2008 Annual U.S. Delegation Post-Trip Press Conference

A post-trip press conference was held on 3 July 2008 to brief members of the media about the main issues dealt with during the delegation’s stay in the U.S. Members of the delegation shared their observations and experiences gained from the trip at the press conference. Ms. Karen Tang said that the theme of this year’s trip was “Hong Kong: an ideal place to live and to invest”. “We meant to share the strategic position and value of Hong Kong to China and to the region, especially with its well established core value and system and its proximity to the Mainland” explained Ms. Tang. Mr. Daniel Fung commented that, “The upshot of our full and frank discussions over five days is that the United States have no burning issues with regard to Hong Kong and acknowledge that our governance, economy and rule of law after reversion to Chinese sovereignty have all been a remarkable success, although they will look with interest at our democratic development after 2017. As for China, the United States recognize that Sino-U.S. relations constitute the single most important strategic bilateral relationship in the world of the 21st Century. The conclusion reached by consensus with our interlocutors at the end of our weeklong mission is that, despite challenges in many areas including trade, currency, the environment, security including energy security, human rights, IPR protection, democracy and the rule of law, Sino-US relations will not merely remain stable but will continue to deepen, including deepening into strategic cooperation (including energy security and green tech), and the incoming US President Elect will likely govern from the center.” Mr. James Thompson shared that, “I felt that our dialogue with numerous influential people in New York and Washington helped us relay the importance of Hong Kong’s position in the relationship between China and the United States. I came away from our trip with strong feelings that there is a keen understanding among America’s most influential ‘movers and shakers’ that the world is focusing on China as we enter the Asian Century. Regardless of the outcome of the U.S. presidential election, I have confidence that trade and political relations with the United States will remain strong.” The Foundation’s Council Member Mr. Joseph Yu expressed that he was glad to participate in this meaningful trip. He looked forward to more dialogues like these in the future. The Foundation’s Council Member Ms. Winnie Ng, who has already participated in the Foundation’s delegation to the U.S three times, believed that, “the Beijing Olympics marks a watershed in the development of China and an opportunity to further boost the international stature of Hong Kong”. The Foundation’s Council Member Dr. Gerald Chow further explained that, “China’s rise has always been complex and evolving. As it promotes an export-based economy while maintaining domestic stability in today’s flattened world, it is often faced with many daunting challenges. U.S.-Sino relations, in particular, have never before been in a delicate balance with strong nationalistic sentiment on both sides. With the coming U.S. election and perhaps, a more engaging foreign policy towards China with the new administration, this relationship can grow ever stronger through Hong Kong’s role in working as a bridge between these two great nations. That Hong Kong will continue to maintain a special place in the future of China is without question; but it is perhaps more compelling to imagine the possibilities of Hong Kong’s role in a world where China’s influence has never been greater.” Delegation members attended the post-trip press conference: (L to R) Foundation’s Council Member Mr. Joseph Yu, Mr. Daniel Fung, Foundation’s Executive Director Ms. Karen Tang and Mr. James Thompson

2008.07.03

2008 Annual U.S. Delegation

2008.06.15 - 2008.06.21

2007 Annual U.S. Delegation Post-Trip Press Conference

A press conference was held on 03.07.07 to brief members of the media about the people and organizations that the delegation has met during their stay in US; members of the delegation also shared their experience gained from this delegation. The Hon. CY Leung, The Hon Bernard Chan and Prof. Stephen Cheung mentioned on the press conference that itinerary of the delegation was packed yet well-knitted. They were able to meet with many influential Government officials, think tanks, NGOs, Congressmen and media in the States. The Hon. Leung said that, theme of his speeches was successful implementation of “One Country, Two Systems” in Hong Kong, which was generally endorsed by the attendees. The attendees also agreed that Hong Kong has enjoyed the high degree of autonomy under the Basic Law without interference from Mainland China. At the same time, China’s booming economy has helped Hong Kong strengthen its international competitiveness. There were repeated expressions of “astonishing” by attendees to describe the encouraging developments of Hong Kong in the past ten years. The Hon Leung also highlighted the need for Hong Kong to study its proactive role in the financial and economic aspects in the Sino-US Strategic Economic Dialogue. The Hon. Chan expressed that ten years ago, people in Hong Kong and outside Hong Kong foresaw a series of problems to be happened after Hong Kong’s return to China. However, it turned out that these problems did not happen. On the contrary, other unanticipated problems sprang from the close and frequent contact between Hong Kong and China, such as marriage between the couples of Hong Kong and the Mainland, and the heavy traffic at the borders, warrant more attention from the society. These reflected the bilateral influence on each other during the process of integration between Hong Kong and China. Talking about the economy, Professor Cheung said that many of the attendees were interested in the economic cooperation between Hong Kong and the Mainland, and how this could bring to Hong Kong opportunities and challenges. Professor Cheung quoted cases of the issuance of RMB bonds in Hong Kong and the IPOs of companies from Mainland China in Hong Kong, to illustrate Hong Kong’s strategic two-way role in helping the Mainland China’s companies enter the international market, and the international enterprises to invest in China. This was the second time that Miss Winnie Ng joined the Foundation’s delegation. Miss Ng regarded that the US experts on Hong Kong and China affairs had an understanding on related issues. However, continuous and timely communications were especially important in a rapidly developing society. The Foundation would continue to support this kind of meaningful events, said Miss Ng. Miss Tang thanked the delegates and all the organizations visited for their support in making the delegation a tremendous success. The Foundation would continue its dedication in enhancing greater international understanding between East and West by facilitating communications between Hong Kong, China and the international community. The Foundation would endeavour to organize this kind of visits for more exchanges and to promote better understanding to each other. Speeches of the 3 delegates are as follow: The Honourable CY Leung Ladies and Gentlemen, Good afternoon. China’s economic development in the last 30 years has been described as miraculous. Hong Kong has played a key role in this process. I would like to share some personal experiences and then make some suggestion as to why the US and Hong Kong should work together. In 1988, China amended its Constitution to allow private ownership of leasehold land, or “land use right”, a term I had coined in the many lectures I gave on the Mainland. I was asked to draft the tender sale documents and help organize the process for the Shanghai Government in the first such sale. The sale was successful. The 50-year land use right proved acceptable to both socialist China and the international market. It was sold to a Japanese investor for some US$30 million. In 1992, I was part of the delegation of the Hong Kong Stock Exchange giving a seminar in Beijing on the feasibility of IPO’s of Mainland state-owned enterprises. In the following year, Tsingtao Beer became the first such enterprise listed in Hong Kong. 15 years later, over 370 Mainland enterprises are now listed on the Hong Kong Exchange, accounting for half of its total market cap and 60% of total turnover. Several Hong Kong Chinese professionals have been appointed to very senior full-time and part-time positions by the Chinese government to help develop the securities market. Secretary Paulson has said that economic relationship is an important part of the overall relationship between the US and China. He has focused intensely on China from the day he became Treasury Secretary. To manage this economic relationship on a long-term basis, Presidents Bush and Hu established the Strategic Economic Dialogue (SED). The two sides met for the second time last month and agreed on a series of measures in the areas of financial services, non-financial services and trade, and tourism. In financial services, China announced that it will take steps that will provide opportunities for the following: Expansion of US financial services industry Increased QFII Expansion of QDII investment to include equity investment RMB credit and debit cards services by foreign backs, and Market access for insurance companies What does Hong Kong have to offer? Hong Kong has the only RMB clearing system outside the Mainland of China and will be able to issue RMB denominated bonds in June 2007, providing intermediation between the Mainland and the rest of the world. Hong Kong is also the only retail market for RMB forward contracts to hedge against currency risks and therefore has the prerequisite to launch RMB denominated hedging instruments such as futures and options contracts. Most foreign banks with a presence in Hong Kong use Hong Kong as the country and regional head-office in managing the Mainland Chinese business. Hong Kong has always been the most resourceful talent pool for China business. The language, geographical and cultural proximities to the Mainland has meant that Hong Kong also provides the best research, database and market intelligence services.The rule of law and the independent judiciary in Hong Kong are also crucial features of a regional financial services centre. Last week in Hong Kong, Mr. James Cunningham, US Consul-General in Hong Kong said, “the United States believes that one country, two systems has been a success for Hong Kong and for China. The Basic Law’s commitment to preserve a high degree of autonomy for Hong Kong and to maintain the integrity of its distinct economic, legal and social systems by and large has been observed.” Under the One Country Two Systems principle, Hong Kong and the Mainland maintain separate financial and foreign trade systems. The Hong Kong system has been and will be an excellent intermediary for the Mainland and the rest of the world. I strongly believe that it will remain so as the US and China deepen their bilateral economic relationship. In the words of the US Counsel General again, “Hong Kong plays an important role which benefits China, the U.S and many others in the globalized, interdependent 21st century.” Thank you! The Honourable Bernard Chan Thank you very much. I would like to discuss some of the changes we have seen since the handover 10 years ago. These are changes as seen from the point of view of business and indeed individuals. I think one key point to make is that the return of Hong Kong from the British to China is in some ways a sideshow. That didn’t, on its own, change the economic picture very much. The real story here is the rapid development of China during that time, and the impact of that on Hong Kong. Hong Kong went through a bad time after the handover, with the bursting of the property bubble and the SARS outbreak. But our economy is once again on track. In terms of the regulatory and legal environment, Hong Kong is no different today from what it was before 1997. The bureaucracy is still business friendly. The tax burden is still low and simple. People’s freedoms are secure. And it is still a superb place for a regional operation to be based in. But some things have changed. For example, think about the border between Hong Kong and the Mainland. Before 1997, it was seen as an assurance. Now, it is seen more as a nuisance that hinders travel between Hong Kong and its hinterland. One of its four crossing points has 300,000 people crossing every day – the busiest in the world. We used to be afraid of Mainlanders flooding into Hong Kong. Now we welcome them for their tourist dollars. Of the 25 million visitors last year, 13.6 million were from the Mainland. Ten years earlier, we had 13 million visitors in all, and only 2 million were from the Mainland. The traffic goes two ways. Many Hong Kong people are living and working in the Mainland. Hong Kong people buy apartments in the Mainland. That was almost unheard of in the 1980s. These unexpected changes are the result of China’s rapid growth. This has brought some negative effects to Hong Kong. An obvious example is air pollution, much of which comes from factories across the border – many of them Hong Kong-owned. Another problem is food safety. We get 70 percent of our food from the Mainland. We didn’t think about these things before the handover. China’s development has also pressured some of the less competitive parts of the Hong Kong economy and workforce. People ask whether the Mainland represents an economic partner or a competitor to Hong Kong. We saw nearly all our manufacturing base move across the border in the 1980s and 90s. More recently, white collar jobs such as data entry and accounting have started to move across the border. This has raised fears in Hong Kong that more and more of our workforce will find it hard to compete in future. We are losing less-skilled jobs to the Mainland, and we are seeing a growing gap between rich and poor. This probably all sounds quite familiar to you here in the USA. The difference is that we don’t have union leaders and politicians demanding tariffs on Mainland goods or revaluation of China’s currency. We are right on the cutting edge of globalization. Our less skilled people are seeing the negative side of it. But the rest of us see the best effects of it. We own the factories and run the trading, and the logistics and the finance. At the same time, as Professor Cheung has explained, Chinese companies have started to access global capital markets through Hong Kong. Our stock market overtook New York last year in terms of the value of IPOs. *** Hong Kong’s relationship with the Mainland cannot be compared to the one between, for example, New York City and New Jersey. There are separate customs and immigration systems. Because of that, Hong Kong has access to American technology that cannot be sold in the rest of China. But as I said, the border has created unexpected problems. It interferes with labour mobility. Our welfare system gives the less skilled a major incentive to live in Hong Kong, even as their job opportunities decline. At the same time, our immigration policy still places barriers in the way of young, skilled Mainland talent. New York can attract the best college graduates from across the United States. But in Hong Kong, Chinese from outside the city are basically treated like foreigners. They need to line up an employer first and get a visa. We now have cross-border social problems, like family separation. A husband might live a hundred miles north of Hong Kong managing a Hong Kong-owned factory. He only sees his wife and kids at the weekend. This leads to infidelity, family disputes and so on. Our teenagers go over the border for cheap alcohol and drugs. The number of Hong Kong people arrested in the Mainland for possession is rising, while the number in Hong Kong is actually falling. Some of the drugs they abuse over the border are fakes, or have impurities, so they can be even more dangerous than usual. Many of our senior citizens would like to retire in the Mainland, where the pace of life and the cost of living would suit them more. So we have made their welfare benefits portable provided they are in the neighbouring province of Guangdong. But they would also like to take their subsidized health care with them. Other Hong Kong people living over the border would like this too, and schooling for their children. It’s not like going from New York City to another state. In many cases, Hong Kong people won’t go to Mainland public hospitals – the standards are so low. Even when they are injured, they head for the border if they can. The Mainland school system is not compatible with the Hong Kong one. Are we supposed to build facilities across the border for Hong Kong people? We simply don’t know how to address this issue. Ten years ago, no-one expected these things to be a problem. We were promised 50 years with ‘one country-two systems’. Then, we would integrate. But actually, the process is already happening. And we need to adapt to that. When it comes to looking to the future, I would say the experiences of the last 10 years have created some uncertainty. There has been a lot of concern over Hong Kong becoming marginalized as new gateways into China open up. There seems to be more expectation that Government should in some way guide the economy and find new roles, or protect existing industries like the port from Mainland competition. Some members of the business community, some politicians from across the spectrum, and some former officials have openly questioned our old free market traditions. There is also some confusion about the process of integration with the Mainland economy. On the one hand, it is obvious that there is huge potential for wealth creation if both Hong Kong and the Mainland focus on their own comparative advantages, and find ways to combine them. On the other hand, there are barriers and protectionist feelings on both sides of the border. And there are ambitions. Many Mainland cities make no secret about their desire to rival Hong Kong in some way. There is a political dimension to this as well. Some people in Hong Kong are very patriotic and feel on principle that Hong Kong should be more integrated with the Mainland. Other people feel Hong Kong should put itself first and treasure the things that make it different, including its international ties. I don’t think there is really a conflict here. Most of us feel we can have the best of both worlds. But at a symbolic level, there is an underlying friction here. So when people ask if Hong Kong is becoming more Chinese and less international, you can say yes or no. Some people will point to those areas where we are integrating more. For example, more of our students are going to Mainland universities in search of Mainland careers. More Mainland people are coming to Hong Kong for business or pleasure, or to study or have medical treatment. But Westerners, the Southeast Asians, the Indians are still in Hong Kong. A huge number of Western-educated, English-speaking Chinese are still there. The free press, the rule of law, the old values are still there. You really know you’re not on the Mainland any more when you arrive back in Hong Kong from Beijing or somewhere. So it’s interesting. What we are seeing since 1997 is largely a success. None of the terrible things some people forecast 10 years ago have happened. We are still free, still prosperous, still a great place to do business. The things that have changed are to do with China and its continued, amazing economic transformation. Hong Kong is deeply involved in this. It has produced some unexpected problems – like air pollution, or a widening wealth gap. But it is also giving us some amazing new opportunities to explore. For younger, talented Hong Kong people in particular, this is going to be very exciting. They have a huge, fast-developing country on their doorstep. They have options open to them as they start their careers that I could never have imagined – and I am only in my early 40s. We have been through some shocks. We are learning to adapt to a fast-changing environment. Some people will find it harder than in the past. But I think the majority of us have every reason to be confident about our position as a special part of China. In another 10 years’ time, we’ll look back at the events of the late 1990s up to 2003, and remember them as bumps in the road. Meantime, we’ll be speeding ahead. Thank you all very much. Professor Stephen Cheung Distinguished guests, ladies and gentlemen. It is my great pleasure to be here today to speak to you on the latest economic developments in Hong Kong and to exchange views on how to ensure Hong Kong will forge ahead in the future, while at the same time continuing to affirm its status as one of the leading financial centres of the world. Before July 1, 1997, the front cover of Fortune Magazine of June 1995 predicted, “The death of Hong Kong.” This article highlighted the concerns of Hong Kong residents; whether they would continue to enjoy their established rights and freedoms; whether the existing social, economic and legal systems would be maintained; and whether their way of life would remain unchanged. Of course, we all know that these numerous pessimistic prophecies did not come true. The year 2007 marks the tenth anniversary of the return of Hong Kong’s sovereignty to China in 1997. This is a good time for all of us to reflect on what happened and also what will happen to Hong Kong in the future. Certainly, we have seen some tough times in Hong Kong. The Asian financial crisis of 1997-1998 knocked the wind out of our sails. Hong Kong’s economy hit rock bottom during the SARS epidemic of 2003, and experienced a period of prolonged weakness in economic activity, persistent deflation, rising unemployment, especially among relatively low-skilled labor, and increasing fiscal deficits. But as we all know, Hong Kong’s economy rebounded in 2004 and moved out of recession and deflation, and resumed a course of steady growth. The economy grew by 5.6% in real terms in the first quarter of 2007. The upturn in Hong Kong’s economy over the past three years has been partially triggered by China’s impressive economic performance. As a result of this economic upturn, job creation has steadily gathered strength giving rise to a stronger demand for labor. This in turn, has brought down the annual unemployment rate to 4.3%, in the first quarter of 2007 from the peak of 8.6% in 2003. A total of nearly 300,000 net additional jobs have been created since 2003. In terms of Hong Kong’s competitiveness, Hong Kong’s economy has been ranked as the freest economy by the Heritage Foundation for the 13th consecutive year. Similarly, doing business in Hong Kong is easy and transparent according to the Ease of Doing Business Index, in which Hong Kong has ranked between four to six (4-6) from 2005-2007. In the 2006/2007 China Urban Competitiveness Study, Hong Kong was ranked number one among all Chinese cities according to various indicators. The Global Financial Centre Index report, published by the City of London, concluded that Hong Kong performed well in all of the key competitive areas, especially in regulation and ranked Hong Kong just behind New York and London. Ever since Mainland China adopted its open door policy in 1978, Hong Kong has been the leading gateway connecting Mainland China and the rest of the world. The continuing reforms and the opening up of Mainland China’s economy have further enhanced trade and economic ties between the two economies. We have witnessed a series of major co-operation initiatives such as the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and Mainland China. These arrangements have greatly facilitated the entry of Hong Kong’s goods and services into the Chinese market. On this point, let me cite a few latest statistics. From 2004 to 2006, Hong Kong’s real GDP increased by 25%, financial and insurance services grew by 65%, and imports and exports trade increased by 48%. Since the introduction of the Individual Visit Scheme in July 2003, visitors from Mainland China to Hong Kong have increased by almost 50%. In terms of financial market development, Hong Kong is strategically located as a gateway to Mainland China, which makes Hong Kong ideally positioned to facilitate financial intermediation between China and the rest of the world. Hong Kong’s series of reforms in its financial markets, in particular the securities market, has brought about a regulatory framework on par with international standards. This in turn, has helped to facilitate market development and investor protection. The listing of Mainland China enterprises is a common source of interest on Hong Kong’s exchange. Since the 1980’s, Hong Kong has served as a bridge between Mainland China and the rest of the world, in terms of capital formation. Hong Kong has always been the leading international stock market for Mainland China-related enterprises. China-related enterprises account for about 30% of the total number of listed companies on the Hong Kong Exchange, 50% of Hong Kong’s total market capitalization and about 60% of Hong Kong’s turnover. Now let me chart the way forward in meeting the challenges of increasingly globalized markets and carving out Hong Kong’s niche in the global economy. As we all know, the financial services sector is the core strength of Hong Kong’s economy. Hong Kong, with its sound regulatory system and advanced financial infrastructure, is well-positioned to play a significant role in the future development of Mainland China. I believe Hong Kong financial services sector could play an important role for China-related enterprises to expand their overseas markets. Another important point I would like to emphasize is that public investors are important participants in Mainland China’s securities market. As more workers leave rural areas for the cities, they will come into greater contact with the global economy and develop a greater recognition of the potential incomes and wealth available. I strongly believe that the Hong Kong securities market can help to design and provide more investment products for mainland investors and thereby Hong Kong can become Mainland China’s most important centre for personal wealth management. The Hong Kong derivatives market is by and large well regulated. It has weathered several historic storms such as the Asian financial crisis and subsequent speculative attacks on the Hong Kong dollar. All these incidents proved that the Hong Kong derivatives market has a sound risk management system. Today, Mainland China could use the Hong Kong derivatives market as a testing ground for Chinese financial derivatives products. This development can provide risk management instruments for the investment community. I must at this stage talk about the strong interest in holding Renminbi assets, which indicates that there should be a good demand for Renminbi bonds as well. Issuing Renminbi dominated bonds in Hong Kong, will facilitate the channeling of Renminbi back to Mainland China and further develop Hong Kong as the major fund raising centre for Mainland China enterprises. On the one hand, this will additionally strengthen Hong Kong’s position as the region’s international financial center. On the other hand, this will develop an alternative funding channel for Chinese companies in a well regulated market that is open to the international investment community. A successful launch of Renminbi bond issues will prove that Hong Kong possesses the expertise and infrastructure for large-scale issuance of debt instruments. Closing Remarks ——————– Ladies and gentlemen, the remarkable economic growth of Mainland China has brought about abundant opportunities and an exciting future for Hong Kong. Hong Kong should work toward capitalizing on the market opportunities arising from Mainland China’s robust and sustained economic growth. Mainland China’s emergence as a major economy and its continuing economic reforms will provide lots of opportunities to the international community. To stay ahead in the game, Hong Kong needs to continue to benchmark itself against the world’s leading financial centers for the purposes of enhancing its financial infrastructure, promoting market development and upgrading market quality. Thank you. Members of the delegation shared their experience and views on the conference, (from left) Professor Stephen Cheung, The Honourable CY Leung, Ms. Karen Tang, The Honourable Bernard Chan and Ms. Winnie Ng Group photo of the delegation Foundation’s Executive Director Ms. Karen Tang briefed members of the media about the visit to the US

2007.07.03

2007 Annual U.S. Delegation

2007.06.17 - 2007.06.24

2007 Annual U.S. Delegation Press Briefing

The Better Hong Kong Foundation “the Foundation” will organize its annual delegation to the United States during 17th to 24th June this year. The delegation will visit important leaders from government, Congress, academia, business, media, think tanks and related NGOs in Washington D.C. and New York, to update them about Hong Kong’s recent development and economic outlook. A press conference was held on 12 June 2007 to brief members of the media about the theme and members of the delegation. Miss Karen Tang was the leader of this delegation and the delegates include: Hon. CY Leung, Convenor of the Executive Council of HKSAR, and Chairman, Asia Pacific, DTZ; Hon. Bernard Chan, Member of the Executive Council and the Legislative Council, and President, Asia Financial Holdings Ltd.; Prof. Stephen YL Cheung, Professor (Chair) of Finance, Department of Economics and Finance, Faculty of Business, City University of Hong Kong; Miss Winnie Ng, the Foundation’s Council Member, and Executive Director of Kowloon Motor Bus Co. Ltd; and Mr. Al. Reyes, Commentator on International Affairs. Miss Tang explained on the conference that this year is the 10th anniversary of Hong Kong returning to China. Hence the Foundation has made the theme of this year’s delegation “Hong Kong in the Past Ten Years and the Road Ahead”. “We will review Hong Kong’s positioning during its integration with Mainland China, its uniqueness as a cosmopolitan city and gateway to the world; and describe the challenges and opportunities that it faces under the principle of one country two systems. During the mission, Hon. CY Leung, Hon. Bernard Chan and Prof. Cheung would speak at public talks or luncheons hosted by Carnegie Endowment for International Peace, Brookings Institutions, the Fund for American Studies, HKSAR Government’s Economic and Trade Office in New York, and the Asia Society. The delegation would also meet with Cato Institute; Carnegie Endowment for International Peace; State Department, East Asian and Pacific Affairs; Commerce Department of U.S.; American Enterprise Institute; Institute for Foreign Policy Analysis; and members of the local media, etc. Apart from meetings with US Government officials and NGOs, the delegation would also attend luncheons or dinners hosted by the Embassy of the People’s Republic of China in the United States of America, Chinese Consulate General based in New York and Chinese Ambassador to UN. Hon. CY Leung, Hon Bernard Chan and Prof. Cheung stated on the conference that their speeches would focus on HK’s economic developments and economic relations with Mainland China. They would also analyze how HK makes use of its unique relations with China to maintain its competitiveness and status as a Regional financial hub and business centre. Miss Tang expected that the delegation would come back with fruitful results, which would be announced at a later stage. At the press briefing, Executive Director of the Foundation Ms. Karen Tang introduced the schedule of the annual delegation to the US (From left) Professor Stephen Cheung, Ms. Karen Tang, The Honourable CY Leung and The Honourable Bernard Chan bid success to the delegation

2007.06.12

Qinghai-Tibet Railway Visit

With the assistance of the Hong Kong and Macau Affairs Office of the State Council of the PRC, the Better Hong Kong Foundation organized a visit to Qinghai and Tibet with Heads and senior executives of local media. Dr. Ronnie Chan, Chairman of the Foundation and Mr. CY Leung, Convenor of the HKSAR Executive Council also took part. Dr. Roy Chung, Council Member of the Foundation, led the group to the newly constructed Qinghai-Tibet Railway, and had meetings with senior officials of Qinghai Municipal Government and the Tibet Autonomous Region of the PRC. Members of the tour all found the visit a fruitful and enjoyable one. On seeing the success of the trip, Ms. Karen Tang, Executive Director of the Foundation and the Deputy Leader of the Delegation, has pledged to continue to organise trips like this to stay on top of the latest developments on the Mainland, while enhancing the understanding and communication between the media and members of the Foundation. Meeting with Vice Governor of Tibet Autonomous Region of PRC Group Photo at Potala Palace

2006.08.26 - 2006.08.31

2006 Annual U.S. Delegation

The Better Hong Kong Foundation organized a high-level delegation to the United States, which included Miss Elsie Leung, former Secretary for Justice, Miss Winnie Ng; Executive Director, Kowloon Motor Bus; Professor James Tang, Dean of Social Sciences Faculty of the University of Hong Kong, and a Visiting Fellow at the US Brookings Institute; Mr. Alex Reyes, Senior Political Commentator & a then Visiting Fellow at Columbia University; Mr. George Yuen, the Chief Executive of the Foundation, and Miss Karen Tang, the Foundation’s Executive Director elect. During the visit, the delegates presented the U.S. administration, congressmen, business leaders, academia, think tanks and media with the latest on the political and economic situation in Hong Kong, its investment outlook and constitutional development. U.S. participants included representatives from the State Department, the Commerce Department, the Senate and the House, and their Staffers. Furthermore, discussions were held with the Heritage Foundation, the Cato Institute, the Brookings Institute and the Centre for International and Strategic Studies (CSIS) respectively. Delegates also met with the top management of leading U.S. corporations, among them Citibank, HSBC, Goldman Sachs, Morgan Stanley and the internationally recognised rating agency, Standards & Poor’s. The delegates attended forums. at four top U.S. universities – including Harvard, Tufts, Stanford and UC Berkeley – where Miss Elsie Leung outlined the importance of rule of law as the core value for the HKSAR under the ‘One Country, Two Systems.’ principle. She also covered other topics such as intellectual property rights (IPR), CEPA and constitutional development. Our delegation with Mr. Stephen S. Roach, Chief Economist and Director of Global Economic Analysis of Morgan Stanley (Fourth from right) Our principal delegate, former Secretary for Justice, HKSAR, Ms. Elsie Leung was invited to speak at Stanford University

2006.05.07 - 2006.05.18