80. An indicator of the development of Hong Kong as Asia's world city is that, apart from multinational companies setting up regional headquarters here, Mainland enterprises also use Hong Kong as their base and service centre. There are currently about 3 million state-owned and collectively owned enterprises in the Mainland. The number of private enterprises is roughly the same and increasing by over 20% annually. Many of these enterprises are now capable of investing outside the Mainland. The "going global" development strategy and measures formulated by the Central Authorities are being gradually put into effect. Recently, the Mainland has further relaxed restrictions to encourage and support Mainland enterprises under all forms of ownership to set up business in Hong Kong and Macao. Approval procedures have also been streamlined, part of the approving authority has been devolved and the processing of applications has been speeded up.

81. Hong Kong should seize the opportunities arising from the "going global" strategy for Mainland enterprises. To attract more Mainland enterprises to Hong Kong, we will help them raise capital, establish international trading networks and gain quick access to the international market. As at mid-2004, the number of Mainland enterprises with regional headquarters in Hong Kong was 20% higher than in the previous year. Hong Kong has its unique advantages, but its operating costs are also higher. We will do our best to attract more Mainland enterprises, large and small, to come to Hong Kong.