A number of Hong Kong major chambers of commerce, financial organizations as well as tourism-related departments and companies have expressed their welcome to the government's 2006-07 budget presented to the Legislative Council by Financial Secretary Henry Tang on Wednesday.

David Eldon, chairman of the Hong Kong General Chamber of Commerce, said he congratulated the Financial Secretary on being able to restore fiscal balance.

He said his chamber supports the Financial Secretary's decision to launch a consultation on implementing a Goods and Service Tax.

The chamber feels that the Financial Secretary's strong commitment to the financial and tourism sectors is certainly most appropriate, as they are two of the main pillars of Hong Kong's economy.

More over, they are two sectors where the rapid changes taking place in the Chinese mainland are most likely to have a direct and positive impact on Hong Kong.

Ian Fok Chun-wan, chairman of the Chinese General Chamber of Commerce, said the new budget put forward proposals that are expected to both benefit Hong Kong's long-term economic growth and actively respond to the requirements of the business community and the citizens.

He said Hong Kong's economic achievements prove that the series of economic measures taken by the Hong Kong Special Administrative Region (HKSAR) government in the past few years are quite effective.

He also welcomed the government's proposed expansion of Renminbi service, which could help consolidate Hong Kong's position as an international financial center.

Fok welcomed the government's measures to promote the financial market, which helps bridge Chinese mainland ventures to enter international market and overseas ventures to settle in the Chinese mainland.

Hong Kong Exchanges and Clearing Limited (HKEx) said in a press release that the transaction levy forms part of the transaction cost of trading. HKEx expects the proposed reduction will help lower overall transaction costs in securities and futures and options trading, and will be welcomed by investors and market participants.

HKEx believes the government's initiative will encourage greater market participation, and increase the competitiveness of Hong Kong's financial markets.

HKEx said it will support the government's proposal to expand the scope of Renminbi business and closely monitor market demand and take into account the market infrastructure when assessing the need for any new measures or products.

The Securities and Futures Commission (SFC) is pleased to note that the Financial Secretary has made upgrading market quality one of the four most important initiatives to enhance Hong Kong's financial services.

SFC Chairman Matin Wheatley said that the SFC welcomes the government's confirmation of its plan to introduce legislative changes later in the year to give statutory backing to the more important listing requirements.

The SFC also supports the formation of the Financial Reporting Council as part of the overall effort to upgrade market quality.

Selina Chow, chairperson of the Hong Kong Tourism Board (HKTB), said, "We warmly welcome the tourism-related proposals announced in the budget and the government's commitment to continuously developing diversified tourist facilities, which will help broaden Hong Kong's appeal, attract even more visitors and ensure the long-term growth of our tourism industry."

She stressed, "In particular, we support the government's bid to further extend the Individual Visit Scheme to six other cities in the Pan-Pearl River Delta region. The proposed extension will enable us to maximize the overall exposure of Hong Kong, thus increasing the Chinese mainland travelers' propensity to visit Hong Kong."

She said that the HKTB had opened its fourth mainland office in Chengdu City of Sichuan Province. The office will help reinforce the HKTB's network in the Chinese mainland for the development of the central and southwestern China travel markets.

Cathay Pacific Airways also expressed its strong support to the new budget. The airline welcomes the government's business facilitation measures to cut red tape and streamline procedures, therefore reducing the cost of doing business in Hong Kong and enhancing Hong Kong's competitive edge.

Cathay Pacific Chief Executive Philip Chen agrees with the Financial Secretary that the best foundation for business is to maintain an orderly market, a level playing field, and a favorable business environment that will enable Hong Kong companies to compete efficiently on the global market.

Source: Xinhua