Hong Kong authorities and industry leaders have voiced optimism foreign investors will be lured by recent relaxations to a cross-border trade deal allowing the city’s business to adopt local laws and arbitration services for their mainland China operations.
Maggie Wong Siu-chu, the permanent secretary for commerce and economic development, said on Wednesday that the amendment to the Closer Economic Partnership Arrangement (Cepa) brought “institutional innovation and strengthened connections”.
Wong also touted the benefits for Hong Kong’s role as a “a superconnector and a super value-adder”, praising changes that would allow companies with under three years of operating experience to qualify for Cepa.
“This not only helps Hong Kong businesses enjoy prioritised treatment earlier but also attracts enterprises and talent from all over the world to settle down in Hong Kong and expand into the mainland market,” Wong said at a forum on the trade agreement.
The second amendment to the cross-border free-trade deal takes effect on March 1. It will further relax qualification requirements for Hong Kong professionals working on the mainland and remove certain restrictions on shareholding and business scope across the border.
The amendment covers seven industries: banking and securities; insurance; telecommunications; tourism; film; television; and construction and related engineering services.
