Hong Kong finance firms to strengthen links with mainland China
The latest supplement of the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and mainland China is set to liberalise 20 sectors, including finance, tourism, and the legal profession.
CEPA VI, signed earlier this month, contains 29 liberalisation measures to facilitate trade and investment between Hong Kong and China.
“This represents another strategic move in the long term development of Hong Kong as the international financial centre for the mainland,” said Peter Wong, chairman of the Hong Kong Association of Banks, and HSBC Group general manager.
Guangdong province will be the recipient of many of the pilot initiatives, which will include the ability of Hong Kong banks to expand by opening sub-branches there. Additionally, qualified Hong Kong and mainland securities firms will be allowed to set up joint venture securities investment advisory companies.
In addition to liberalisation measures, CEPA now also includes two new sectors: research and development and rail transport.
The additions come into effect on October 1, 2009.