Whether the changes in the trade environment and the adjustment of the central government's macro policies will have an impact on the Hong Kong businessmen investing in the mainland, the Liaison Office of the Central People's Government in the Hongkong Special Administrative Region (hereinafter referred to as the "China Liaison Office") convened more than 10 industry representatives of the Hongkong Federation of industry yesterday to hold talks.

Wang Hui, Vice Minister of economic affairs of the China Liaison Office, said at the meeting that he would return to Beijing to report the situation and further strengthen communication between the mainland and Hongkong.

Since the adjustment of macro-economic policies such as processing trade in the mainland last year, the investment in mainland China has focused on these four aspects.

Representatives from more than 10 industries including footwear industry, toys, jewelry, auto parts and so on in Hongkong Federation of industry show that due to the impact of multiple factors, the pressure is increasing in the mainland.

On behalf of the footwear industry, the business director of the anglong fairytale world (Hongkong) Limited, Lin Cai Lang, yesterday interviewed in the first financial daily, said that the Hongkong Federation of industry was divided into 23 industries. But yesterday, the more than 10 industry representatives attending the meeting almost summed up the problems faced by Hong Kong businessmen in the mainland investment. As the shoe industry is currently the biggest hit in the Pearl River Delta, thousands of enterprises have closed down, so Wang Hui gave a detailed understanding of the operation of the shoe industry to the company yesterday.

Lin Cailang said that although the cost of operation in the Pearl River Delta has been rising rapidly, the large purchasers such as WAL-MART, which were affected by the subprime mortgage crisis this year, are desperately trying to keep their prices down. Some small and medium-sized buyers have also significantly reduced their orders, and many shoe enterprises are facing difficulties.

In order to reduce production costs, the enterprise pferred part of its production to Sichuan in 2005. Although the labor cost was reduced by 1/3, the pportation cost increased by 3 times, and the production facilities were not perfect, which made a loss of about 5000000 yuan in two or three years.

It is hoped that the government can provide policy support and guidance in the process of industrial pfer.

The problems encountered by different industries are slightly different.

A Hong Kong businessmen from the mold industry reflected that the acceleration of RMB appreciation, the rise of labor and raw material costs greatly increased the operating cost of the enterprise in the Pearl River Delta by 45%~50%, and the labor relations of the enterprise were not smooth at present, and basically no more orders were received in the past two or three months.

An industry representative who invested in jewellery processing in the Pearl River Delta said that although orders can be received at present, due to the influence of subprime lending in the United States, there has been no payment for goods.

The toy industry representative said there was a lot of pressure on safety standards.

Wang Hui said that since the beginning of this year, natural disasters such as snowstorms and earthquakes in the mainland will also cause an impact on the operation of enterprises.

Under the current global environment downturn, Hong Kong businessmen investing in the mainland can overcome difficulties through pformation and upgrading.

He also indicated that he would further strengthen cooperation with the Hongkong Trade Development Council and the Hongkong Federation of industries, and strengthen communication between the mainland and Hongkong, so as to make arrangements for investment protection in both places as soon as possible.