Hong Kong companies in sectors such as film, television, financial services, tourism, telecommunications, construction and related engineering services will now have easier access to the market across the border under relaxed rules from an expanded free-trade deal between the city and the mainland.
From March 1 next year, the changes will ease or remove restrictions on shareholding and business scope for establishing enterprises. The amendment also relaxes qualification requirements for Hong Kong professionals working in the mainland and enables local companies to use Hong Kong's laws and arbitration services for their mainland businesses.
In specific sectors, such as film, the amendment removes restrictions on investment by local filmmakers and allows Hong Kong companies to operate distribution businesses for certain imported buy-out Hong Kong films under mainland authorities.
The 2019 amendment lifted restrictions on Hong Kong personnel involved in coproductions, including the proportion of actors, and the number of required mainland elements.That year, Hong Kong-mainland coproductions such as Integrity, The White Storm 2: Drug Lords, Ip Man 4: The Finale and The New King of Comedy dominated the Hong Kong box office.
The latest CEPA amendment lifts restrictions on Hong Kong creative personnel in online television dramas and allows imported dramas produced in Hong Kong to be broadcast during prime time on mainland television, pending approval from mainland authorities.Bonnie Wong Tak-wei, TVB assistant general manager of corporate communications, said the local broadcaster welcomed any new policy that is conducive to the development of the television industry and is grateful to the Ministry of Commerce and the Hong Kong government for their support.
In the tourism sector, the 144-hour visa-exemption policy for foreign tour groups entering Guangdong from Hong Kong will be optimized.For banking, foreign branches established by Hong Kong firms will now be allowed to offer bank card services.
In the insurance sector, the amendment removes the requirement for Hong Kong financial institutions to have assets of at least US$2 billion (HK$15.6 billion) at the end of the most recent year to invest in shares of insurance companies.Additionally, local surveying enterprises will be allowed to provide services in Guangdong through a record-filing system, and Hong Kong telecom service providers will be permitted to sell international phone cards across the border, though the cards will not be activated within the mainland.
The latest amendment has been welcomed by major chambers of commerce Hong Kong General Chamber of Commerce, Chinese General Chamber of Commerce, Federation of Hong Kong Industries, and Chinese Manufacturers' Association of Hong Kong.
