Streamlined shipment: More than 23,000 certificates of origin were issued at the end of May, involving $8.3 billion worth of exports which enjoy tariff-free treatment upon importation to the Mainland.

The Mainland & Hong Kong Closer Economic Partnership Arrangement (CEPA) created 36,000 new jobs for Hong Kong people from 2004 to 2006, including 1,000 for those working on the Mainland.

These are the findings of the Government's second study on CEPA's economic impact, submitted to the Legislative Council today. It forecasts another 3,600 jobs will be created in Hong Kong.

Goods, services trade

For trade in goods, it said 89% of responding companies considered CEPA beneficial to the economy, and 77% felt the preferential trade arrangement was beneficial to the manufacturing sector.

CEPA induced additional capital investment in the manufacturing industry, amounting to $305 million in 2005 and 2006, and a planned investment of $239 million in 2007 and beyond.

At the end of May, more than 23,000 certificates of origin were issued involving $8.3 billion worth of exports which enjoy tariff-free treatment upon importation to the Mainland.

For trade in services, 74% and 92% felt CEPA was beneficial to the economy and their own businesses.

It has induced additional capital investment in the services sectors at a cumulative amount of $4.8 billion by 2006, representing a rise of 380% over the amount in 2004. The planned investment is expected to be $2.4 billion in 2007 and beyond.

As at the end of May, more than 1,070 Hong Kong service supplier applications were approved and almost 1,780 certificates issued.

Tourist spending

Mainlanders using the Individual Visit Scheme had made 17.2 million trips to Hong Kong as at the end of 2006, accounting for 39% of all the Mainland visitors. They generated an additional $9.3 billion in tourist spending in 2006, almost 38% higher than in 2004.

Following the implementation of the new facilitation policy for Mainland enterprises to invest in Hong Kong and Macau in August 2004, a total of 603 Mainland firms were given approval to invest in Hong Kong between September 2004 and December 2006. The amount of planned investment totalled US$3.9 billion.

Questionnaires were sent to more than 2,600 enterprises in the manufacturing and servicing industries for the study.