In western provinces and regions, where the pace of reform and opening up as well as economic readjustment is to be hastened, capital injection into infrastructure projects and specific industries that characterize the region would be something Hong Kong could do to help out. These industries include traditional Chinese medicine, mining of minerals and tourism.

Speaking to ASEAN trade officials at the forum, Tsang underlined Hong Kong's potential role in helping forge the establishment of the free trade zone between the Chinese mainland and member countries of the bloc.

With its professional expertise and experience in trading with ASEAN countries, Hong Kong could become a base for the ASEAN countries to make inroads into the mainland market and vice versa.

Furthermore, Hong Kong's role as an aviation and logistic hub could bolster the flow of people and goods between the two regions. With joint efforts among the PPRD members, more tourists, for instance, could be lured to the PPRD region from Southeast Asia, Tsang said.

However, the CE sounded a note of warning as he said at a cocktail reception that the implementation of the measures in the 11th plan, such as further reform of the yuan, would have profound impact on the long-term development of the SAR.

That is why, he explained, he would call an economic summit meeting in September to forge a consensus as to what strategy Hong Kong should adopt in order to meet such challenges.

Besides attending the forum, Tsang also visited the exhibition associated with the forum with Guangdong Governor Huang Huahua.

The CE admired the Hong Kong booth for having the best design in the exhibition.

The Hong Kong booth, built with transparent materials like glass and illuminated by special lighting that emitted an aura of modernity, gave a presentation on leading industries and innovation and technology.

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