The Greater Pearl River Delta Business Council today issued its third annual report which carries the findings of research on the impact of the Mainland's processing trade policy on Hong Kong.

It says the Mainland's recent processing trade policy adjustment has affected the city, and suggests that the Central Government conduct advance consultation before introducing policy adjustments and allow for reasonable transition periods.

The study found that Hong Kong-funded enterprises might have to face many pressures in undertaking restructuring and upgrading of their business, including the lack of the necessary financial resources, the lack of the knowledge and experience in brand management and in the research and development of products and technologies.

The council suggested the Guangdong Provincial Government provide one-stop consulting services and expedite the processing of applications by enterprises for conversion from the operation mode of "processing with supplied materials" into "foreign-investment enterprises".

It suggested the Hong Kong Government strengthen ties with the Central Government and the Hong Kong business community by enhancing communications and consultation work on matters relating to policy adjustments on the processing trade, and to boost efforts to provide market information for enterprises.