Hunan offers Hong Kong entrepreneurs and investors a favourable investment environment because of its rich labour resources, low production costs, and the provincial government's active promotion of industrialisation, Chief Executive Donald Tsang says.

Speaking at a reception dinner tonight, Mr Tsang said the profound professional knowledge and international experience of Hong Kong's financial services trade will make a significant contribution to Hunan's economic and trade development.

The country's 11th Five-Year Plan will enhance support for the rising central region, boosting development in industries and promoting industrialisation and urbanisation.

Economic surge

Mr Tsang expects Hunan's economic activities to surge over the next few years, and hopes Hong Kong businessmen will take early advantage of this development. He said Hong Kong's many advantages will help promote the development of Hunan's industry and service trade, adding that close co-operation between the two places is mutually beneficial.

Leading a 100-strong delegation of officials and business leaders, Mr Tsang arrived in Changsha this afternoon on a three-day study tour. He was briefed by Hunan officials on the province's latest developments and future plans when visiting the Yuelu Academy, which has more than 1,000 years of history. Mr Tsang and the delegation also met with Hunan communist party Secretary Zhang Chunxian and Hunan Governor Zhou Bohua.

The delegates will take part in the Hong Kong Hunan Business Co-operation Symposium tomorrow.