Fairs at the Hong Kong Convention and Exhibition Centre (HKCEC) have always been seen as important stepping stones into China business for international companies. This position has been reinforced in recent months by a surge in Mainland buyers at major Hong Kong events.

The annual survey of Hong Kong's trade fair industry conducted by the local industry association shows that the number of Mainland buyers visiting Hong Kong shows in 2001 was up 68% on 2000. Chairman of the Hong Kong Exhibition and Convention Organisers' and Suppliers' Association (HKECOSA), Stanley Chu commented, "We expect to see even stronger growth in 2002," referring to streamlined Business Visa procedures for Mainland visitors which have helped PRC buyer numbers surge very substantially at the major events in Hong Kong during the first few months of this year.

Fashion seekers from China
The Hong Kong Trade Development Council's (HKTDC) Hong Kong Fashion Week Fall/Winter 2002, which ran at the HKCEC in January, attracted 19,062 buyers from all over the world, a 25% increase over last year. According to the HKTDC, the number of buyers from the Mainland China increased by 75% to 3,191. HKTDC's Senior Manager of Exhibitions, Anne Chick said, "This reflects the fact that with its entry into the WTO, China is not only a production base for Hong Kong companies but also a fast-growing market."

A similar story was seen at CMP's Asia Pacific Leather Fair where visitors were up overall 30%. In particular, the company says, there was a significant increase in number of buyers from Mainland China.

The HKTDC's Hong Kong International Jewellery Show 2002, which took place in March, also saw the Mainland Chinese topping the list of out-of-town visitors with 1,034 buyers, up 37%, followed by US buyers at 903, up 3.2%. Chairman of the Fair Organising Committee, Leung Sik Wah, said this showed the great potential of the Mainland market. "China's economy is growing robustly. Apart from a manufacturing base, it is also a huge domestic market that no one should miss," Leung said.

More exhibitors too
The HKECOSA survey shows that it isn't just a question of more buyers coming from China. As well as the buyers, Mainland companies are increasingly using Hong Kong events to promote their business. The number of Mainland Chinese companies exhibiting at Hong Kong fairs was up over 50% year on year in 2001 at 3,061. Since 1997, that number has soared by 182%.

Hong Kong is the international commercial and financial centre for Mainland business
Even as China continues to open up to international business, Hong Kong's role as the pre-eminent centre for commerce and finance has been strengthened. According to a survey completed by the HKTDC, private enterprises from the Mainland believe that no other city can replace Hong Kong as an international centre with the city's fair and transparent legal system winning particularly high marks.

HKTDC's Chairman, Peter Woo, recently quoted an Italian government official who told him "Hong Kong is a China that speaks English, where you can understand the institutions and the laws work".

Of those responding to the survey:

• 82% said they consider Hong Kong as a strategic geographical location to manage regional business activities;
• 60% believe Hong Kong is an ideal platform for seeking foreign capital and human resources;
• 55% said they were considering opening a Hong Kong office as their business expanded.

In a recent economic analysis, the Bank of East Asia has commented that Mainland companies know that they will face greater competition from foreign companies now that China is a member of the WTO. They see an urgent need for them to upgrade their business and become more competitive in the rest of the world. Hong Kong and trade fairs in Hong Kong in particular are seen as a vital stage in that process of upgrading.

Hong Kong leads the world
The HKTDC points out that "as a business partner and platform for China, Hong Kong leads the world". The HKSAR is the largest single investor in the Mainland China. Its firms have over 190,000 ventures there and employ five million workers in the south alone.

The Pearl River Delta alone accounts for 34 per cent of China's exports, much of which is funnelled through Hong Kong. In 2001, Mainland China's top three exporting cities were Shenzhen (US$37 billion), Shanghai (US$27 billion) and Dongguan (US$19 billion). The first and third are right on Hong Kong's doorstep, perfectly positioned to take advantage of the promotion and marketing opportunities offered by Hong Kong's trade fairs.

Management control, marketing and co-ordination remain in Hong Kong whose companies playing a leading role in electronics, plastics, soft goods, household items, gifts and premiums, toys, watches and clocks, garments and accessories. It is natural, then, that a huge amount of the buying activities for those products takes place in Hong Kong and in particular at Hong Kong's world-class trade fairs taking place at the HKCEC.