1 Recent Economic Developments in Pearl River Delta (PRD) Mr Gregory Leung 16 May 2013

2 GDP Projection of HK, GZ, Shenzhen (SZ) from 2011 to 2020 GZ SZ HK * The estimated figures are projected by the economic data from 2000 to 2010 RMB 100 million

3 ` GZ SZ HK RMB * The estimated figures are projected by the economic data from 2000 to 2009 Projection of GDP per capita of HK, GZ and SZ from 2010 to 2020

4 Recent Developments (1) Replaced by research-based, innovative, high-tech industries Traditional labour intensive, low-tech industries disappearing

5 Encourage emergence of modern heavy industries, such as car-manufacturing, petro-chemicals, ship-building, steel & metal industries Facilitate SMEs to link up and form clusters of modern industries Recent Developments (2)

6 Encourage the development of modern service industries as a base for further upgrading of the manufacturing sector Recent Developments (3) Development of modern industries Upgrading of manufacturing sector

7 Shenzhen has become a financial centre ranking after Shanghai and Beijing in the Mainlands With the decline in overseas market, finished products are now geared towards the domestic market Recent Developments (3)

8 Plan to invest heavily on infrastructure developments in the remote parts of Guangdong in the next five years Recent Developments (4)

9 1.The importance of Hong Kong as a contributing factor to the development of PRD is declining and is expected to continue to decline, because: a)Hong Kong has inadequate experience in research-based, innovative nor heavy industries Impact on Hong Kong (1)

10 b)The traditional ‘Front shop, back factory’ operation model is breaking up c)Shenzhen is competing with Hong Kong in the provision of financial services to the local industries Impact on Hong Kong (1)

11 2.Recent focus has been on the facilitation of the import of Hong Kong services sectors into PRD Pilot schemes: Hengqin ( 橫琴 ), Qianhai ( 前 海 ) and Nansha ( 南沙 ) Impact on Hong Kong (2)

12 With the focus on the development of a modern manufacturing sector, local businesses may have to look beyond Hong Kong for partners Future Opportunities (1)

13 Future Opportunities (2) Foreign Technology Hong Kong Contact Opportunities Foreign Technology Hong Kong Institutions Opportunities Foreign Technology Hong Kong Talents Opportunities

14 Thank you!