HONG KONG -- Hong Kong Chief Executive C Y Leung said Hong Kong should actively participate in the proposed Guangdong, Hong Kong & Macao Free Trade Area, which will be mutually beneficial.

Leung and Guangdong Governor Zhu Xiaodan cochaired the 16th Plenary of the Hong Kong/Guangdong Cooperation Joint Conference in Hong Kong Monday. They also attended a ceremony in which agreements on several cooperation items between Hong Kong and Guangdong were signed.

Speaking to the media after the ceremony, Leung said Guangdong has played an important role in Chinese mainland's reform policy, adding that Hong Kong's manufacturing industry has shifted its base to Guangdong, and the city has focused on developing its service industry.

Hong Kong can make use of its advantages as an international center and cooperate with Guangdong to meet the challenges ahead, he said.

On the tourism front, Leung said Hong Kong values tourism including the Individual Visit Scheme, which allows residents from 49 cities of Chinese mainland to travel to Hong Kong.

He thanked the central government for ceasing its policy on multiple-entry permits last year after considering Hong Kong's capacity and its impact on residents' livelihood.

Leung said Hong Kong is working hard to increase the capacity and new attractions to receive tourists.