Supplement V to the Hong Kong-Mainland Closer Economic Partnership Arrangement (CEPA) has been signed, expanding the total number of services sectors covered from 38 to 40.

The Mainland will introduce 29 liberalisation measures covering 17 service sectors, including two new sectors - services incidental to mining, and related scientific and technical consulting services.

The measures will come into force January 1, 2009.

Business pact: Financial Secretary John Tsang and Vice-Minister of Commerce Jiang Zengwei sign Supplement V to the Hong Kong-Mainland Closer Economic Partnership Arrangement. Chief Executive Donald Tsang says the new package will open more opportunities for Hong Kong traders.

More opportunities

Financial Secretary John Tsang and Vice-Minister of Commerce Jiang Zengwei signed the document today.  

Witnessing the signing, Chief Executive Donald Tsang said the new package will open more opportunities for Hong Kong traders who wish to enter the Mainland market.

The measures will not only bring mutual economic benefits but will also create a solid platform for enhancing economic integration between the two jurisdictions, he said.

For conventions and exhibitions, enterprises formed by Hong Kong service suppliers on a wholly-owned, equity joint venture or contractual joint venture basis in Beijing, Tianjin, Chongqing and Zhejiang will be allowed to organise overseas exhibitions on a pilot basis.

In banking, any Mainland-incorporated banking institution established by a Hong Kong bank will be allowed to locate its data centre in Hong Kong, subject to the fulfilment of certain requirements.

In construction and related engineering services Hong Kong professionals obtaining the Mainland's registered Urban Planner or Supervision Engineer qualification will be allowed to register and practice in Guangdong regardless of whether they are registered practitioners in Hong Kong or not.

Restrictions removed

Restrictions on the proportion of the total capital contributed by Mainland partners in forming construction and engineering design enterprises in the form of an equity joint venture or contractual joint venture on the Mainland will be removed.

In relation to social services Hong Kong service suppliers will be allowed to operate welfare agencies for people with disabilities in the form of wholly-owned private non-enterprises in Guangdong on a pilot basis.

In tourism Guangdong will be delegated the authority to approve applications submitted by Hong Kong service suppliers for forming travel agents on a wholly-owned, equity joint venture or contractual joint venture basis in Guangdong.

Hong Kong permanent residents with Chinese citizenship will be allowed to take the Mainland Qualification Examination for Tourist Guide. Those who have passed the examination can obtain the Mainland Tourist Guide Certificate in accordance with the requirements.

Validity period extended

In accounting the validity period of the Provisional Licence to Perform Audit-related Services, applied for by Hong Kong accounting firms to conduct auditing businesses on a temporary basis on the Mainland, will be extended from two years to five.

Dedicated examination centres in Hong Kong, Shenzhen and Dongguan will be formed for Hong Kong residents to sit the Mainland's accounting qualification examinations.

In medical and dental, Hong Kong service suppliers will be allowed to form wholly-owned outpatient clinics in Guangdong. There will be no total investment requirement in setting up outpatient clinics by Hong Kong service suppliers in Guangdong.

There will be no restriction on the ratio of capital investment between Hong Kong service suppliers and Mainland service suppliers in forming outpatient clinics in the form of equity joint ventures or contractual joint ventures in Guangdong.

The health administrative department in Guangdong will be responsible for the project establishment and approval procedures for setting up outpatient clinics by Hong Kong service suppliers. Qualified Hong Kong permanent residents with Chinese citizenship and with specialist doctor qualifications will be allowed to apply for and obtain the Mainland's medical practitioner's qualification certificate through accreditation.

Supplement V also opens up the Mainland market in two new services sectors. Hong Kong service suppliers will be allowed to provide services incidental to mining on a contractual joint venture basis (confined to exploration of oil and natural gas only), and related scientific and technical consulting services (prospecting and surveying services for iron, copper and manganese) on a wholly owned, equity joint venture or contractual joint venture basis.

HK-Guangdong ties

To further deepen Hong Kong-Guangdong economic and trade co-operation, the Governments of Guangdong and Hong Kong will implement 25 liberalisation and facilitation measures for early and pilot implementation in Guangdong.

The measures cover accounting, construction and related engineering, medical and dental, placement and supply services of personnel, environment, social services, tourism, education, maritime transport, road transport, and individually-owned stores. Seventeen of the measures are included under CEPA. Some of the other early and pilot measures cover education and tourism. 

In education, Guangdong will be delegated with approval authority on applications submitted by Hong Kong institutions to form schools for Hong Kong people's children.

A joint approval mechanism by the Ministry of Education and Guangdong authorities will be formed to jointly assess and approve education institutions and projects operated jointly by Guangdong and Hong Kong.

On tourism, the coverage of the simplified entry arrangement for 144 hours will be extended to the whole of Guangdong. Mainland-authorised Hong Kong travel enterprises will be allowed to organise group tours to Hong Kong Disneyland for non-Guangdong residents who have resided and worked in Shenzhen for over a year. Guangdong' s pilot programme for a wholesale tourism reform, including strengthening Hong Kong-Guangdong tourism co-operation, will be supported.

The two sides also agreed to enhance co-operation in branding, trademark, e-commerce in the area of trade and investment facilitation, and to continue work on mutual recognition of professional qualifications in accounting and construction.

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