Shanghai Mayor Han Zheng and Hong Kong Chief Executive Tung Chee-hwa expressed their shared belief yesterday that closer cooperation between two of Asia's most aggressive business hubs will create a win-win situation for the development of both cities. 

The governments of Shanghai and Hong Kong signed a deal to strengthen cooperation in several key areas yesterday, mainly involving the service and trade sectors.

The areas include airport construction and management, port logistics, preparations for the World Expo 2010, tourism and exhibition industries, investment and trade, education, health, culture, financial services and human resources.

Airport authorities from the two cities signed in Hong Kong a letter of intent for closer cooperation.

The letter calls for the two sides to share management experience in areas such as security and environment and explore cooperation in airport management. The two authorities will also build a platform for the transfer of management experience.

Other deals made during the trip of the Shanghai delegation to Hong Kong will allow Hong Kong investors to participate in construction and management of Shanghai's port and shipping business.

The Shanghai government will also support Hong Kong companies involved in the planning, construction and management of Expo venues and consulting, legal and accounting services for the Expo.

In the fields of tourism and exhibitions, a regular communication system will be established between the two cities to improve tourism promotion. Shanghai will also loosen entry restrictions for Hong Kong companies and encourage the Hong Kong subsidiaries of multinationals to enter the Shanghai market.

Universities in the two cities will carry out more exchanges and scientific cooperation.

Shanghai will invite Hong Kong teachers to offer bilingual education in middle and primary schools. The two sides will also enhance information exchanges and scientific research into medical treatment.

Shanghai's financial institutes will hire senior Hong Kong professionals to improve their management.

"Today's discussion has resulted in exciting achievements. We have formed a new working system for cooperation," Han said at a press conference in Hong Kong yesterday. "Since the two cities can complement each other with their own advantages, (competition) will surely enhance our development."

Tung said that Hong Kong's high-quality professionals, mature service sector and large amounts of capital can satisfy the needs of fast-developing Shanghai while Shanghai can provide huge opportunities for professionals and investors.

Han said Shanghai may post economic growth of about 11 percent this year and the Shanghai government will be more active in promoting bilateral cooperation with Hong Kong.

(Eastday.com October 28, 2003)