China is many markets at different stages of development. Opportunities for Hong Kong companies are enticing but complex. Each mainland region has its own market characteristics and requires a different approach. The key to tackling such vastness and diversity is focus.

Hong Kong's natural focus is the PRD, the world's largest manufacturing basin, our closest new consumer market and the mainland region where Hong Kong's "first mover" advantage is strongest.

Different mainland regions are competing and striving for economic pre-eminence. In particular, the Yangtze River Delta is catching up fast with the PRD. Overseas companies are attracted to Shanghai and neighbouring areas, notably from Taiwan's electronics industry.

While Hong Kong has significant investments throughout the mainland, including Shanghai, our biggest stake is in the PRD and its continued rise and competitiveness as a growth engine of China.