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Mainland, HK sign expanded economic agreement

(Xinhua)
Updated: 2009-05-09 14:07

HONG KONG -- The Chinese central government and the government of the Hong Kong Special Administrative Region Saturday signed the sixth supplement to an important trade agreement to give Hong Kong firms greater and easier access to the mainland market for tourism, securities and banking services, among others.

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The Supplement VI to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), representing the sixth expansion in as many years, was signed by John Tsang, financial secretary of the HKSAR government, and the central government's Vice Minister of Commerce Jiang Zengwei in Hong Kong at a ceremony witnessed by HKSAR Chief Executive Donald Tsang.

Speaking at the ceremony, Donald Tsang said the supplement agreement will introduce 29 measures that will build on the liberalization of 20 services sectors and open two more sectors of research and development and rail transport to Hong Kong businesses.

The total number of services sectors covered by the CEPA and its supplements will thereby be expanded from 40 to 42, Jiang said. Under the agreements, the mainland has agreed to exempt tariffs for all products of Hong Kong origin and allow preferential treatment to Hong Kong service suppliers in the service sectors.

The new measures will take effect on October 1, 2009, three months earlier than usual, to "allow the trade to enjoy the benefits earlier," Jiang said at the ceremony.

Donald Tsang welcomed the agreement, saying that the new measures will be mutually beneficial and help mitigate the impacts of the ongoing economic downturn.

Under the new agreement, mainland travel agents authorized to operate group tours to Taiwan can organize group tours for mainland residents to enter Hong Kong in transit. The aim was to help the travel trade develop multi-destination tourism packages.

Authorization requirements have been also further relaxed under the agreement for Hong Kong commercial banks to establish sub- branches or service points, while qualified securities firms in Hong Kong and the mainland will be allowed to establish joint businesses in Guangdong, the mainland province neighboring Hong Kong.