Updated at 4.06pm: Financial Secretary Henry Tang Ying-yen on Wednesday stressed the increasing importance that the mainland's economy was having in Hong Kong.
In his second budget speech, Mr Tang said economic co-operation between Hong Kong and the mainland was developing at an impressive rate. This would mean that the Closer Economic Partnership Arrangement would have to be developed further.
'Our objective is to develop and expand Cepa still further. To this end, the government is now soliciting the views of relevant business sectors and will be holding discussions with the appropriate ministries of the Central Government,' he said.
Mr Tang said the mainland was Hong Kong's largest trading partner and its second-largest source of foreign direct investment. Hong Kong was also the mainland's largest source of foreign investment. 'In the Pearl River Delta (PRD) region alone, for example, our manufacturing industry employs about 11 million workers, over three times the Hong Kong workforce,' he revealed.
Mr Tang said about 240,000 Hong Kong residents regularly worked in China. 'In recent years, the mainland economy has been upgrading gradually. Its structure is also becoming more diversified. Such developments do pose constant challenges but they also open up new opportunities for Hong Kong.'
Mr Tang said that as a long-term strategy, Hong Kong needed to continue strengthening its economic ties with Guangdong and other provinces and cities.
'This will extend our co-operation with the mainland, complement its further development and reinforce our own position as the region's premier bi-directional business platform.'