China, Hong Kong Expand Economic Agreement

Hong Kong firms will have greater and easier access to the mainland Chinese market for tourism, securities and banking services. The Chinese government and the Hong Kong Special Administrative Region signed the sixth supplement to a trade agreement Saturday to give effect to the new measures. The supplemental agreement is effective October 1, 2009.

The supplement agreement provides 29 measures with a view to liberalize 20 services sectors and open two more sectors of research and development and rail transport to Hong Kong businesses. The closer economic partnership agreement and the supplements would be expanded from 40 to 42.

The agreement provides tariff exemption to all products of Hong Kong origin, and gives preferential treatment to Hong Kong service suppliers in the service sectors.

Among the new measures adopted include further relaxation in the banking sector for Hong Kong commercial banks with provisions to establish sub-branches or service points. The agreement also contains provisions for qualified securities firms in Hong Kong and the mainland China to start joint businesses in Guangdong Province.