The Economy | 49
and Commercial Bank of China and Bank of China in the previous year. The listings. further broadened Hong Kong's stock market base and entrenched Hong Kong's position as a major fund-raising centre in the region.
In addition, Hong Kong's maiden issuance of renminbi (RMB) bonds in June 2007 was a key milestone for the city. Hong Kong is the first venue outside the Mainland to engage in the issuance of RMB bonds. This has reflected the Mainland's recognition of Hong Kong as its premier international financial centre, and served as a catalyst for further developing Hong Kong's bond market.
The economic cooperation and integration with the Mainland has been fostered through the Closer Economic Partnership Arrangement (CEPA) and the Pan-Pearl River Delta Regional Cooperation Framework Agreement. In June 2007, the Hong Kong Government and the Central People's Government (CPG) reached an agreement on liberalisation measures under the fourth phase of CEPA, introducing 40 new liberalisation measures in 28 services areas, including 17 existing CEPA services areas and 11 new services areas. As a result, the total number of services areas. covered by CEPA expanded from 27 to 38. The latest CEPA package offered a positive response to a number of recommendations in the Final Report of the Economic Summit on China's 11th Five-Year Plan and the Development of Hong Kong.
There was also notable development in fostering even closer ties between Hong Kong and Shenzhen. The Hong Kong-Shenzhen Western Corridor and the Shenzhen Bay Port were opened for public use in July 2007. A cooperation agreement on 'Shenzhen/Hong Kong Innovation Circle' was also signed in May 2007.
The 2007-08 Policy Address announced 10 major infrastructure projects for promoting economic development, of which the four cross-boundary infrastructure projects will enhance the flow of people and goods between the Mainland and Hong Kong. Indeed, more effective cross-boundary linkages with near-by Mainland cities and provinces will help expedite the integration of Hong Kong with its hinterland.
Hong Kong has the unique advantage of having the Mainland as the hinterland while maintaining an international outlook. With the increasing integration of the Mainland with the global economy and the urbanisation and industrialisation in the Mainland, Hong Kong's role as an international financial, trade and shipping centre will continue to strengthen. This will also help Hong Kong's development on such fronts as financial services, logistics, tourism and information services.
The Economy in 2007
External trade
Merchandise exports registered another year of notable growth in 2007. Total exports of goods (comprising re-exports and domestic exports) grew by 8.3 per cent in real terms in 2007, after an increase of 10.2 per cent in 2006. The global economy remained robust during most part of the year, but the weakness of the US economy