The objective is to explore business opportunities and forge closer economic partnerships with China's underdeveloped hinterland.

Led by SAR Chief Secretary for Administration Donald Tsang, the delegation's visit to Xi'an is the first stop of a 10-day trip which will also take in Beijing, Chengdu and Urumqi.

Comprising more than 280 government officials, heads of major corporations, business professionals and journalists, the visit was in response to the central government's call to develop western China, Tsang told the media.

The chief secretary said he did not expect the trip to immediately result in many deals being signed, but described it as a chance for Hong Kong to get close to first-hand information on the investment climate in the vast inland regions.

"We are here to make friends, establish business contacts...and better understand the mainland market," the chief secretary told the media. "And I hope I will be followed up by more visits."

Kwok Ping Kwong, deputy chairman of Sun Hung Kai Properties Ltd, said he had joined the delegation to see for himself the investment opportunities in western China, adding that his firm would consider investing in any feasible area.

He saw tremendous opportunities in the west but cautioned that a successful investment is a test of patience.

Provincial leaders of Shaanxi were out in force yesterday to meet the Hong Kong group and brief the visitors on the province's economic performance and potential.

Party Secretary Li Jianguo and Governor Cheng Andong made a strong sales pitch for the host economy which, they said, although underdeveloped, has maintained a sound growth momentum.

They were proud of an average 9 per cent GDP growth in the last five years and forecast a 10 per cent growth rate in the next five years.

Cheng said his province plans to build itself into an economic powerhouse on the back of the government's western development strategy.

The SAR delegation will stay in Xi'an for two more days for seminars with the local business community and to undertake visits to high-tech projects - mainly relating to agriculture, the IT industry and new materials.

Shaanxi sees itself as the third largest high-tech centre in the country after Beijing and Shanghai.

The province has more than 2,000 research institutions backed by a pool of 851,000 scientific talents.

It was in Xi'an in 1999 that President Jiang Zemin officially initiated the campaign to unlock the potential of western China.

Last week, Hong Kong Chief Executive Tung Chee-hwa told the SAR's business leaders that the go-west campaign has significant political and economic implications.

"In the last 20 years Hong Kong has made important contributions to the opening up of the country, and has benefited from it," Tung said. "We are confident the same will happen in the development of the west region."

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