Hong Kong still plays an important role as a financial hub and logistics centre in the Pan-Pearl River Delta (PPRD) region, said Standard Chartered Bank Director Peter Wong Tung-shun yesterday.

Wong, who is also chairman of the Hong Kong Association of Banks, said this hours after the PPRD Regional Co-operation and Development Forum opened in Hong Kong in the morning.

He made the remark in response to worries that Hong Kong's status could be diminished after the launch of regional economic co-operation in the PPRD region, comprising nine provinces and two special administrative regions (SARs).

But Wong said, "A big delegation sent by the mainland government to Hong Kong clearly showed the importance of Hong Kong (in the PPRD regional economic co-operation)."

The mainland government always stressed that Hong Kong is an international trading hub and information and logistics centre, Wong noted.

"If it (PPRD co-operation) is properly co-ordinated, it will provide tremendous benefits to Hong Kong," said Wong, adding that PPRD co-operation could help generate more employment and make Hong Kong a vigorous society.

Meanwhile, Wong is optimistic on the outlook for Hong Kong's economy.

He said the local economy has not shown a sign of slowdown recently although the seasonally-adjusted purchasing managers' index (PMI) - which is based on some indicators like production and employment environment - stood at 54.8 in April, a slight drop from 55.4 in March. A PMI below 50 indicates a contracting economy.

He said the drop reflected that economic growth had soared too rapidly over the past few months.

(HK Edition 06/02/2004 page2)