Expanded free trade pact 'will pull global businesses to Hong Kong'

Staff reporter

The new amendment to the Closer Economic Partnership Arrangement effective next month will attract global companies to set up in Hong Kong and broaden their markets in mainland China, said Undersecretary for Commerce and Economic Development Bernard Chan Pak-li.

Last year, the Hong Kong government and the Ministry of Commerce signed the Second Agreement Concerning Amendment to the CEPA Agreement on Trade in Services, effective March 1.

During a discussion of the Legislative Council's panel on commerce, industry, innovation and technology, Chan noted the amendment will attract enterprises and talent worldwide and boost Hong Kong's service sector.

He said the agreement creates better conditions for local service providers to expand in the mainland market and strengthens Hong Kong's role as a super-connector.

The amendment grants Hong Kong companies in seven sectors such as film, television, financial services, tourism, telecommunications, construction, and related engineering services easier access to the mainland market.

The amendment will also ease or remove restrictions on shareholding and the business scope for establishing enterprises.

Chief Executive John Lee Ka-chiu, meanwhile, said a seminar regarding the CEPA will be held today to introduce new measures and arrangements.