Local businesses and professionals in Hong Kong are set to benefit from easier access to mainland markets, thanks to a recent amendment to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). Financial Secretary Paul Chan announced the positive development after the SAR government and the Ministry of Commerce signed an agreement to modify the CEPA framework for trade in services.
The original free trade agreement, established in 2003, provides favorable access to the mainland market for eligible Hong Kong companies and residents. The upcoming changes, scheduled to go into effect on March 1 next year, will involve the elimination or relaxation of business scope restrictions for establishing enterprises, as well as a reduction in qualification requirements for professionals in specific sectors.
Chan expressed his optimism about the amendment’s impact on Hong Kong professionals looking to expand into the mainland market, particularly via the Greater Bay Area. He highlighted the sectors that stand to benefit directly from the relaxation agreement, including testing and certification, telecommunications, filming, television, financial services, and tourism.
The amendment will allow local surveying companies to offer services in Guangdong province through record filings, while Hong Kong telecom service providers can now sell international phone cards that cannot be activated in mainland China across the border. Additionally, improvements will be made to the 144-hour visa-exemption policy for foreign tour groups entering Guangdong from Hong Kong, benefiting the tourism sector. In the banking industry, foreign bank branches established by Hong Kong entities will be permitted to provide bank card services.
When asked about recent stock market fluctuations, Chan acknowledged the impact of various factors, such as external interest rates, on the financial market. He advised investors to exercise caution and carefully manage risks in response to market dynamics.
In light of these amendments to CEPA, local enterprises and professionals are encouraged to explore the enhanced opportunities for market access and expansion into mainland China. The changes reflect the ongoing efforts to strengthen economic ties between Hong Kong and the mainland, fostering greater collaboration and mutual benefit for both regions. By leveraging the advantages offered by the CEPA framework, businesses can position themselves for growth and success in the evolving regional economic landscape.
