Beijing actually introduced nearly US$300 million of investment from Hong Kong during the first four months of the year, 2.9 times the figure a year ago, according to the Beijing Municipal Commerce Bureau.

The big increase is partly a result of the implementation of the Closer Economic Partnership Arrangement between Hong Kong and the mainland (CEPA), which took effect on January 1, 2004, said the bureau.

From January to April, Beijing ratified 124 HK-funded projects locally, up 31.9 percent year-on-year, involving 370 million dollars in contractual investment from HK.

HK investment in Beijing mainly flowed into industries like manufacturing, consulting businesses in legal, economic and other fields, logistics, real estate, and software development.