HK's CEPA Amendment: New opportunities for businesses and professionals in the mainland market

Following signing the Second Agreement on the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) Agreement on Trade in Services, Financial Secretary Paul Chan addressed the media, highlighting the benefits of the newly amended agreement for Hong Kong businesses and professionals.

Expanding Access to the Mainland Market

Chan emphasized that the CEPA Amendment introduces further liberalization measures to make it easier for Hong Kong firms and professionals to access the Mainland market.

"With reduced thresholds, fewer qualification requirements, and expanded scope of market access, Hong Kong professionals can now enter the Mainland market with greater ease," Chan said. He also noted that the Greater Bay Area is expected to serve as the primary entry point for many businesses. "This will create significant opportunities for industries such as testing and certification, telecommunications, film, television, financial services, and tourism," he added.

Specific Benefits for the Film Industry

Addressing why the film industry was included in this amendment, Chan pointed out that liberalized measures will allow Hong Kong's film industry to better collaborate with Mainland counterparts, enhancing content production and distribution. "The amendment facilitates co-productions and the sharing of resources, which will boost the competitiveness of Hong Kong's film industry on both the Mainland and international stages," he explained.

Impact on Hong Kong's Economy and Startups

When asked about the overall economic impact, Chan stated that the CEPA Amendment will immediately benefit Hong Kong's economy by opening more doors for startups and established firms. "We expect a significant number of companies and professionals to take advantage of this opportunity, particularly in the Greater Bay Area," he said. Chan also stressed that the government will work closely with professional groups and industry stakeholders to ensure smooth implementation of the measures across different sectors.

Stock Market and Economic Outlook

Regarding recent fluctuations in Hong Kong's stock market, Chan acknowledged the volatility but emphasized the positive effects of Mainland China's policy announcements in late September. "We've seen a market rebound following the announcement of several supportive measures from the Mainland. While short-term fluctuations are inevitable, the overall outlook remains positive," Chan remarked.

He also discussed property market trends, noting that capital flow and economic conditions will continue to play a significant role in shaping market dynamics.

Boosting Tourism and Market Confidence

Turning to tourism, Chan highlighted new measures that facilitate foreign tour groups' entry into Guangdong Province, allowing them to visit multiple destinations, including Hong Kong. "The 'One Trip, Multiple Stops' initiative is well-positioned to encourage tourists to stay in Hong Kong before exploring the Mainland," he said. He also noted that Hong Kong's unique role under 'One Country, Two Systems' and its position as a free port makes it an ideal gateway for international visitors looking to explore the Mainland.

Strengthening Hong Kong's Global Competitiveness

Reflecting on Hong Kong's global positioning, Chan underscored the city's strong legal framework, freedom of capital, and strategic location as key factors that continue to attract foreign investors. "Hong Kong is well-equipped to serve as a platform for foreign businesses to explore opportunities in Mainland China and the broader Southeast Asian region," he said.

Looking ahead, Chan outlined two main strategies: consolidating traditional U.S. and European markets and expanding into new markets such as Southeast Asia and the Middle East. "Southeast Asia has deep cultural and historical ties with Hong Kong, and we're seeing growing interest from Middle Eastern investors," he explained.

Conclusion: "Go Global, Invite In"

In conclusion, Chan reiterated Hong Kong's focus on "going global" to tell Hong Kong's story while also "inviting in" international visitors and investors. He expressed confidence in Hong Kong's ability to continue playing a pivotal role as a bridge between Mainland China and the world. "Our goal is to strengthen our traditional markets while also tapping into new opportunities, ensuring Hong Kong remains a vibrant, attractive city for both business and tourism," he said.

Related News: 

HK as cultural exchange hub: Insights from Kenneth Fok on Performing Arts Expo

HK's trade services sector enjoys huge opportunities as CEPA relaxes access criteria