ENG-2011 — Page 92

56 The Economy

Mainland enterprises were listed on the Hong Kong stock market as at the end of 2011. Among them, 54 were listed in 2011. A total of $226.3 billion of equity funds was raised by Mainland enterprises during the year. These activities in turn reinforced Hong Kong's position as a major fund-raising centre in the region.

In 2011, Hong Kong achieved some milestone developments in consolidating its. position as a premier offshore renminbi (RMB) business centre for the Mainland. Since August 2011, cross-border trade settlement in RMB has been expanded to cover the entire nation. Total RMB remittance for cross-border trade settlement conducted through Hong Kong amounted to RMB1,915 billion in 2011, more than five times the level recorded in 2010. Hong Kong is the first place outside the Mainland to develop an RMB bond market. By the end of 2011, there had been 120 RMB bond issuances with a total issuance size of about RMB182 billion. RMB deposits in Hong Kong amounted to nearly RMB590 billion at the end of 2011, representing an increase of 87 per cent over the end of 2010. In August 2011, the Central Government announced a package of 36 measures to boost Hong Kong's role as an offshore RMB centre and global financial centre. These include, among others, launching exchange-traded funds for Mainlanders to invest in Hong Kong stocks, allowing the repatriation of yuan via RMB qualified foreign institutional investors (RQFIIs) and foreign direct investment (FDI), and expanding RMB- denominated bond issuance in Hong Kong. The measures will broaden the scope of the offshore RMB market in Hong Kong and expand the channels for the flow and circulation of RMB funds between Hong Kong and the Mainland.

The economic co-operation and integration with the Mainland has been fostered through the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). In December 2011, the Hong Kong Special Administrative Region (HKSAR) Government and the Central People's Government signed Supplement VIII to CEPA, introducing a total of 32 services liberalisation and trade and investment facilitation measures, which include 23 liberalisation measures in 16 service sectors, and strengthen co-operation in areas of finance, tourism, innovation and technology etc. Inclusive of the measures in Supplement VIII, Hong Kong service providers can enter the Mainland market in 47 service sectors under preferential treatment. The new measures will further assist Hong Kong service industries to enter the Mainland market, promote trade integration and enhance professional exchanges between the service industries of both sides.

There was also notable development in strengthening further the transport links between Hong Kong and the Mainland with the commencement of the construction of the Hong Kong Boundary Crossing Facilities of the Hong Kong-Zhuhai-Macao Bridge at end-2011. Upon completion by 2016, the bridge will significantly reduce transportation costs and commuting time between Hong Kong and the Western Pearl River Delta (PRD) region. The improvement of cross-boundary infrastructure will facilitate the flow of people and goods within the Greater PRD and help expedite the integration of Hong Kong with its hinterland.

Hong Kong has the unique advantage of having the Mainland as its hinterland while maintaining an international outlook. Thanks to the further integration of the