China to offer more concessions to Hong Kong companies
Wall St Journal | MAY 9, 2009
China to Offer More Concessions to Hong Kong Companies
By JACKIE CHEUNG
HONG KONG — China will further open banking and securities services to Hong Kong companies, Hong Kong Chief Executive Donald Tsang said Saturday.
New supplements to the Closer Economic Partnership Agreement will also open the way for Hong Kong companies to participate more in other services, including tourism, legal services and rail transport.
Under CEPA’s latest provisions on banking services, China will allow Hong Kong banks to set up service points in other areas without first having branches there. Beijing will also allow Hong Kong securities firms owning a stake in joint-venture securities companies in mainland China to provide investment advisory services.
The Hong Kong government said the new measures can help enhance the city’s competitiveness in mainland China. Such measures not only will help companies overcome the current financial crisis, but also promote the long-term economic development of both sides, it said.
The new measures, which are the sixth supplement to CEPA, take effect Oct. 1. China signed the first CEPA agreements with Hong Kong in 2003. Supplementary agreements since then have strengthened the city’s economic cooperation with China.
Under CEPA, China has applied zero-tariff treatment to products originating from Hong Kong and granted Hong Kong-based companies greater access to its domestic markets
