John Lee: HK benefits from new CEPA Amendment Agreement
On Oct. 9, Hong Kong signed the Second Agreement Concerning Amendment to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) Agreement on Trade in Services (Amendment Agreement II). Chief Executive John Lee stated today (Oct. 15) before the Executive Council meeting that this new amendment significantly benefits Hong Kong.
Stakeholders from various sectors have welcomed the agreement, which will be implemented on March 1 next year. The government will ensure its implementation, explanation, and promotion to help industries leverage the favorable measures offered.
Lee highlighted that Hong Kong benefits in multiple ways under the amended agreement. Firstly, several of Hong Kong's competitive industries, such as television and film, will have new opportunities. Specific changes include the removal of restrictions on the number of key creative roles that Hong Kong personnel can hold in web TV dramas and lifting investment restrictions for Hong Kong service providers in movie production.
In tourism, the visa-free policy for foreign tour groups entering Mainland China through Hong Kong will be extended from 144 hours in the Greater Bay Area and Shantou to the entire Guangdong province. This arrangement will help Hong Kong's industry develop multi-stop tourism products to attract international visitors.
In the financial services sector, the requirement for Hong Kong financial institutions to have at least US$2 billion in total assets at year-end to invest in insurance companies has been removed, allowing more Hong Kong financial institutions to enter the Mainland insurance market.
Lee further noted that the agreement brings institutional innovation, offering flexibility and convenience for Hong Kong businesses investing and developing in Mainland China.
New measures such as "allowing Hong Kong-invested enterprises to adopt Hong Kong law" and "allowing Hong Kong-invested enterprises to choose for arbitration to be seated in Hong Kong" will leverage Hong Kong's advantages in legal dispute resolution to help build a better environment in the Greater Bay Area. Additionally, the loosening of restrictions aims to attract global businesses and talents to Hong Kong and facilitate their entry into the Mainland market.
Since CEPA's implementation, trade has continually grown, with Hong Kong issuing nearly 250,000 CEPA certificates of origin, involving HK$160 billion and covering about RMB10 billion yuan in tariff concessions. Of 160 service sectors, 153 are open to Hong Kong, with many industries welcoming the new measures set for implementation next year. The government will continue its promotional efforts.
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