The Sars outbreak in Beijing has had a serious impact on Hong Kong's business there, says the director of the city's office in the capital. Bowen Leung Po-wing said: 'The impact can be seen in the cancellation and postponement of business talks. [Some of these talks] involve foreign investors. [These foreign investors] either did not come or postponed their travel plans. Some instead used tele-conferencing. This inevitably has had an impact on business.' He said another area seriously affected was the hospitality business run by Hong Kong businessmen in Beijing. Hotels and restaurants have been deserted by tourists, business travellers and local customers. However, Mr Leung said he was not aware any immediate plans by Hong Kong clients to withdraw their investments in Beijing. The capital has the largest number of Sars cases on the mainland, with 2,370 reported by early yesterday.