The conference also featured an on-site contract signing ceremony, during which relevant organizations and enterprises from Hainan and Hong Kong signed 12 cooperative projects covering a variety of fields, including culture, technology, and food processing, extolling complementary strenths and pragmatic cooperation.

Mutual engagement, shared results

Hong Kong is Hainan's largest source of overseas investment, accounting for over 70% of Hainan's paid-up overseas capital, and is Hainan's largest trading partner in services. A number of collaborative high-end service projects in legal, accounting, consulting, and other sectors have already landed in Hainan.

Likewise, Hainan highly values its close relationship with the region, having established the Hainan–Hong Kong Economic Cooperation Development Advisory Committee and actively promoting the creation of a Hainan–Hong Kong Economic Cooperation Demonstration Zone. Notably, during the Boao Forum for Asia annual conference, the two regional governments signed a Memorandum of Understanding (MOU) to deepen cooperation in five domains: trade and investment, finance, data flows, tourism, and talent exchange, bringing solid results to both sides.

This positive interaction has generated strong momentum, producing results greater than the sum of its parts.

In May this year, Hainan Drinda New Energy Technology CO., Ltd was officially listed on the Hong Kong Stock Exchange, becoming the first "A+H" share-listed company in China's photovoltaic sector.

In June, BioV Foundation Gene Biotechnology (Hainan) Co., Ltd., a Hong Kong-funded and majority-owned company, was registered in the Haikou National High-Tech Industrial Development Zone. This is the first overseas-invested stem cell project since the FTP opened its doors to outside investment in human stem cells and gene-related technologies, marking another milestone in Hainan–Hong Kong cooperation.

In the first seven months of this year, Hong Kong investors established 382 new enterprises in Hainan, a year-on-year increase of 7.3%, and Hainan's actual utilization of Hong Kong-sourced capital reached CNY 11.87 billion, up 99.3% year-on-year. Hong Kong has also become Hainan's third-largest trading partner in goods.

Even brighter prospects after special customs operations

"Complementarity" has become the keyword of Hainan–Hong Kong cooperation.

Hainan is gifted with a beautiful ecological environment, a broad market reach, a high degree of economic openness, and a strong appeal to talent. Hong Kong, on the other hand, boasts world-class capabilities in scientific R&D, strengths in financial services, and a rich pool of international talent. Hong Kong can leverage its strengths to provide support to Hainan's enterprises, allowing the two sides to foster new-quality productive forces together.

After special customs operations come into effect, Hainan will leverage Hong Kong's openness and international network to connect more conveniently with global markets. Likewise, Hong Kong can capitalize on Hainan's geographical location, resources, and policy advantages to bring quality products into the Chinese mainland market at more favorable prices.

Site of activity. (Photo provided by Hainan Daily)

Three key benefits expected from cooperation

1. Invigorating market entities. After special customs operations take off, the "zero-tariff" goods list will be significantly expanded, enabling more high-quality Hong Kong products to enter Hainan duty-free.

2. Fostering cross-border industrial clusters. By leveraging Hainan's "zero-tariff + value-added processing duty exemption" policies, Hong Kong's electronics and pharmaceutical enterprises can set up factories in Hainan, creating a cross-border industrial chain where "Hong Kong receives orders, Hainan manufactures, and products are sold globally."

3. Jointly expanding markets of the emerging countries that have signed cooperation documents with China under the Belt and Road Initiative. By taking advantage of Hong Kong's role as an international hub, channels for exporting Hainan products can be expanded, bringing local specialties such as Wenchang chicken and sea snails to overseas markets, including the United States and Southeast Asia.