State leader to attend anniversary celebrations

A high-ranking state leader will come to Hong Kong to take part in celebrations marking the 15th anniversary of the handover, and he is expected to come bearing gifts.

The unnamed official will bring new measures to help the SAR, according to National Development and Reform Commission (NDRC).

Meeting with Hong Kong media bosses in Beijing on Wednesday morning, NDRC Deputy Director Zhang Xiaoqiang said Hong Kong still holds its strong role of helping Chinese corporations to expand overseas, even though it may have lost its edge as a platform for helping foreign companies to invest on the mainland.

Zhang affirmed Hong Kong's strategic role in helping China to grow and "walk outside" — a role that began with China's opening up 33 years ago. Before the handover, Hong Kong was the biggest investor in core businesses in manufacturing on the mainland.

As China is no longer just the "factory of the world", Hong Kong investors nowadays go to the mainland to develop real estate and retail enterprises, while enhancing cooperation in legislations, accounting and transportation.

Meanwhile, Hong Kong is an ideal location to be developed as an yuan offshore center, Zhang said. With abundant professionals and resources, Hong Kong is the preferred city for mainland investors. Overseas investment amounted to $65 billion last year and over half that amount, $36 billion, was placed in Hong Kong.

The deputy director summed up seven areas where the central government has taken measures to maintain Hong Kong's long-term prosperity and stability and to facilitate Hong Kong-mainland cooperation over the last 15 years. He cited large-scale infrastructure, cooperation with Guangdong province, implementation of CEPA, food imports and measures to tackle global warming.

Zhang stressed that the central government has always prioritized Hong Kong and Macao in terms of food supply. Even in 2008 when the mainland experienced food shortages and tightened food exports, the supply to the SAR remained unchanged in order to stabilize prices. China exports 50,000 tons of rice and 470,000 tons of flour to Hong Kong annually.

In response to queries about pricey natural gas from the mainland, which are predicted to raise electricity bill by 40 percent, Zhang said the price of natural gas is determined by the market. He added, however, the price already is lower than the international level. He said if prices are set too low it would place a heavy burden on the gas companies. But immediate benefits would be given to Hong Kong when the price goes down in the future.

With the city facing fierce competition from mainland cities, Zhang urged Hong Kong to develop cultural and technological innovations, in addition to its long-held standings as a leading global financial center.

In the meeting with the Ministry of Education in the afternoon,Vice Minister Hao Ping denied that the central government interfered with the curriculum design of the National Education in Hong Kong and that teachers are left to decide what to teach in classrooms.

Hao said the central government was concerned about the unauthorized removal of secondary school construction "in Mianyang, Sichuen province", funded by the Hong Kong government to pave the way for a luxury plaza. He believed the responsible person will be severely punished.