'We have something like 80 per cent of the world's mink-fur products market - about 80 per cent of which goes through Hong Kong and is worth around HK$7 billion a year,' Mollegaard says of the furs imported by Hong Kong companies, many with production facilities across the border.

'The biggest market has been Russia, but the economic crisis meant a meltdown, but at the same time China came up. We were very lucky to have this fall offset by China. It could have been a serious situation had China had not come up at such a fast speed.'

Denmark's foray into the luxury markets of Hong Kong and the mainland will be heard loud and clear at a special event next month at the Parkview, near Repulse Bay. The Danish consulate had joined forces with a local luxury goods supplier to showcase high-end audio-visual equipment to select guests, among them the city's most well-heeled and discerning consumers.

Vice-consul Thomas Andersen says the equipment ranging from professional-standard audio cable to home cinemas is made to the highest standards of Danish sound engineering, and carries a hefty price tag.

Mollegaard says Bang & Olufsen, for instance, has been mightily impressed with the Hong Kong and Macau markets ever since the Hotel Lisboa Macau ordered televisions from the brand for each of the hotel's rooms. The mainland's new rich and Hong Kong's tycoons are other markets Danish companies want to target.

These efforts also have the royal seal of approval with Prince Joachim and Princess Marie visiting Hong Kong last November as the consulate hosted the Danish Design Jewels event at Harbour City in conjunction with national trade representatives from Dansk Fashion and Textile. The Verandah at The Repulse Bay was chosen as the setting for a fashion show featuring some of the country's leading designers and models, with the luxury theme continuing when three Danish chefs were flown out for a food week at the Grand Hyatt.

Watch manufacturer Skagen also struck a deal with Hong Kong company Jebsen, which has Danish origins, to sell its brands through 250 shops across the mainland. 'Jebsen is actually now more of a Chinese company, but it's good that the chairman is always open to Danish products,' the consul general says.

Hong Kong investment in Denmark over the past year has also impressed consulate officials. Hutchison Whampoa has invested US$20 billion into the 3G business in seven European countries. For Denmark it represents one of the largest investments of its kind.

Several companies are also looking at firms on the Copenhagen bourse, says Invest in Denmark's man in Hong Kong, Asbjorn Overgaard Christiansen. 'What attracts [Hong Kong investors] are companies with knowledge ... ranging from technology and engineering to acoustics and maritime equipment.

'We're getting the message though it's been a difficult year compared to the previous 12 months. However, companies that have taken 10-year tax breaks elsewhere - like in Ireland - are now setting up in Denmark because of the knowledge we have. I think we've broken through the myths about high tax and inflexibility. Several companies have invested and they make money, even through we don't work with incentives,' Christiansen says.

Denmark is also the world's largest producer of wind-energy turbines, but Mollegaard says the market for this lies in the mainland. What he hopes, however, is that Hong Kong's health and transport officials seriously consider purchasing the Danish-made filter for diesel engines that have improved the air quality in Seoul.

Mollegaard's tenure in Hong Kong comes to an end in November. What has impressed him about the city is how business and political leaders are open to ideas about products from Denmark.

'In other countries consulate officials can't ring up a company to promote Danish goods ... they might see us as figureheads not to be taken seriously. But in Hong Kong people are very open and interested to hear about new business.'