Hong Kong Hang Seng Index closes lower

Hong Kong Hang Seng Index decreased 0.03 percent to close at 26,438.51 points on Tuesday.

The Hang Seng China Enterprises Index edged up 0.02 percent to end at 9,386.39 points, and the Hang Seng Tech Index rose 0.56 percent to end at 6,077.66 points.

China's newly approved Inner Mongolia Pilot Free Trade Zone (FTZ) is expected to help turn the northern border areas into a new frontier of opening-up.

China on Thursday released a plan for the establishment of the China (Inner Mongolia) Pilot Free Trade Zone, bringing the total number of pilot free trade zones nationwide to 23. Leveraging its unique location linking Russia, Mongolia and wider Eurasia, the zone is designed to advance the country's high-level opening-up through policy support, industrial upgrading and improved connectivity.

The pilot FTZ covers 119.74 square kilometers and comprises three subzones in Hohhot, capital of the autonomous region, Manzhouli, a northern border city, and Erenhot, a land port on the China-Mongolia border, each tasked with differentiated functions and the development of industries tailored to local conditions.

Specifically, the Hohhot subzone will serve as a central hub, focusing on developing specialty industries and innovation clusters. The Manzhouli subzone will build on China-Russia-Mongolia cooperation to become an important gateway to Northeast Asia and Europe. The Erenhot subzone will tap into the China-Mongolia-Russia Economic Corridor and serve as a model for cooperation with neighboring countries.

At the Hohhot Comprehensive Bonded Zone, a gold and silver refining project due to start operations will have an annual processing capacity of 100 tonnes of gold and 1,000 tonnes of silver.

The Manzhouli subzone will prioritize industries including the processing of imported resources, cross-border tourism, cross-border financial services and port services.

"Following the approval of the free trade zone, companies like ours are more confident in expanding our cross-border business further and broadening its scope. Specifically, we aim to achieve full coverage across the entire industrial chain," said Cui Rongzheng, head of Manzhouli Xincheng Supply Chain Limited Company.

Notably, in the first quarter of this year, the Erenhot Railway Port, a key hub on the "middle corridor" of the China-Europe Railway Express, handled a record-high 1,145 freight train trips, a 22.3 percent increase from last year, underscoring its role in stabilizing global supply chains and supporting foreign trade growth.

"The establishment of the Inner Mongolia Pilot Free Trade Zone will strengthen links between border provinces and China's inland regions, and enhance cooperation between land ports, coastal ports and inland ports. It is expected to play a key role in improving the wellbeing of ethnic minority populations in the border areas and turning China's northern border areas into a new frontier of opening-up," said Wang Xuekun, head of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.