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Shenzhen expects to build closer cooperative ties with Hong Kong and Macao in a wider range of fields in the new century, said Mayor Yu Youjun.

He described the closer cooperation between Shenzhen and Hong Kong as "necessary and inevitable," saying it would effect common prosperity for both Shenzhen and Hong Kong.

Yu's remark was echoed by an economist with the Hong Kong Trade Development Council, who said economic and trade cooperation between Hong Kong and Shenzhen in the past two decades had proved to be a win-win deal for both places.

Hong Kong, which faces Shenzhen of south China's Guangdong province across a river, has been Shenzhen's leading source of investment.

Statistics show that Shenzhen has approved 21,303 Hong Kong-financed projects since it became a special economic zone on August 26, 1980. A total of US$13.714 billion of capital from Hong Kong had poured into Shenzhen through these projects.

Hong Kong-financed businesses in Shenzhen have reported good performances. In 1999, Hong Kong-backed businesses showed 176.22 billion yuan (US$21.23 billion) in sales revenue and realized 8.45 billion yuan (US$1.02 billion) in profits, accounting for 69.44 percent and 68.72 percent of the city's total, respectively. These businesses paid 4.7 billion yuan (US$566 million) in taxes to the state.

Yu said that along with the rapid developments in the world's science and technology endeavors, as well as economic globalization, both Hong Kong and Shenzhen have worked together to speed up construction of major infrastructure projects that affect both places, and to develop finance, commerce and trade, tourism, information and high-tech industries.

(Xinhua)