HONG KONG: At the beginning of China's economic reform, Hong Kong brands were once very popular in mainland cities, including Beijing.

As the recently held Hong Kong Brands Exhibition taking place in the National Convention Center in Beijing - the first of its kind - showed, the SAR's brands have started to step into the Beijing market again.

Products and services welcomed by the mainland range from financial services, subway projects, electrical products, jewelry and watches to comics and toys.

"The quality of Hong Kong brands offers a better guarantee, while their consumer service is good. The company will answer enquiries, whenever there is a problem," Beijing resident Mr Wang said.

"Made in Hong Kong" has come to mean trendy, innovative and of good quality. The products usually have strong attractiveness and competitiveness in the market," said a middle-class consumer on the mainland.

Felix Chan, who is the Northern China Regional Director at the Hong Kong Trade Development Council, said Hong Kong enterprises, with the US and Europe as their major export markets, have been impacted by the global financial crisis.

The mainland market, however, has been less affected, especially the Beijing market, where consumer spending power is still strong. Therefore, the mainland is an attractive market for Hong Kong brands, Chan concluded.

Hong Kong enterprises have always been the largest foreign investors in Beijing. At present, almost 10,000 Hong Kong enterprises are investing in Beijing, with more than $13 billion of investment in total.

Meanwhile, for the first eight months of 2009, Hong Kong companies have commenced 368 new investment projects in Beijing, with contracts worth $3.71 billion, a 27.7 percent jump from a year earlier.

Since the Closer Economic Partnership Arrangement (CEPA) launched in 2003, more than 1,500 products from Hong Kong have been included in the zero-tariff list. Thus, Hong Kong products, compared with other import products from the US, Europe, Japan and Korea, have an advantage to offer in lower prices. 
                                                                                                    Source: China Daily