For Immediate Release
To continually enhance CEPA, which celebrated its 10th anniversary last month, the Hong Kong General Chamber of Commerce presented its latest recommendations to the Hong Kong Government yesterday. The Chamber proposes implementing a hybrid system of “positive and negative lists” in Hong Kong and Guangdong on a trial basis to further liberalize markets in the two areas. Our recommendations include two additional service sectors, namely asset valuation, and corporate governance, compliance & secretarial advisory (CGCSA) services, to further facilitate economic cooperation between the two places.
Since the signing of CEPA in 2003, all goods and services of Hong Kong origin being imported into the Mainland enjoy tariff free treatment. Many sectors such as trade, retail, legal, accounting, construction, medical, film, banking and securities have also benefitted from the arrangement. For the film and television industry, for example, a total of 294 motion pictures have been jointly produced by Hong Kong and the Mainland as of the end of last year. Among them, the blockbuster Journey to the West: Conquering the Demons, with a box office revenue of RMB1.24 billion, is the 2nd highest grossing domestic film in China’s box office history.
To allow more industries to benefit from CEPA through easier access to the Mainland, Chamber CEO Shirley Yuen believes a hybrid system of ‘positive and negative lists’ for market entry can be adopted under a pilot scheme in Guangdong through CEPA. Under the system, the ‘negative list’ approach can be applied to non-sensitive sectors such as logistics, transport, convention and exhibition, trade and tourism in the cities of Guangzhou and Shenzhen on a trial basis. These sectors can enjoy direct access to the Mainland market without being subject to approval by the government.
She added that in Dongguan and Shenzhen, where many Hong Kong businesses are located, sectors that are encouraged by the Mainland Government, such as research & development, brand design, market research, advertizing, environmental consultancy and management consultancy services related to manufacturing in the PRD region, could also enter the Mainland market directly under the negative list system.
Only service industries under the positive list system are allowed to enjoy market entry and national treatment. However, compiling of a negative list of “commercial presence” could enable Hong Kong suppliers of those services sectors that are not on the negative list to enjoy the same entitlements of the positive list system. The Chamber believes such a policy would encourage more investors to enter the Mainland market, as procedures would be simpler and quicker.
The Chamber also suggests opening up the Mainland market to two new services sectors, namely asset valuation and CGCSA. Currently, many Hong Kong companies hold substantial assets in the Mainland. Consequently, they hire the services of local valuers and accountants. The Chamber recommends enhancing the mutual recognition of professional qualifications and cooperation between asset valuers and accountants in the two places.
As it has been proposed that CGCSA services be included in the World Trade Organization (WTO) classifications, we hope it can also be included in CEPA.
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Media inquiries: Please contact Ms Fion Chui at 2823-1299 / [email protected]