The Financial Services Development Council released a report on CEPA today and made proposals to create more opportunities for the financial services industry.
The report, entitled Policy Development Proposals on the Mainland & Hong Kong Closer Economic Partnership Arrangement, is now online.
It noted that CEPA has brought opportunities to different players of the financial services industry in Hong Kong and contributed to the city's economic growth.
Under the arrangement, more Hong Kong-incorporated banks can establish branches on the Mainland, the securities and asset management industry has benefited from the introduction of the Renminbi Qualified Foreign Institutional Investors arrangement, and insurance brokerage companies are able to set up wholly-owned insurance agencies in Guangdong.
The report proposed measures to further support the industries and deepen co-operation between the Mainland and Hong Kong.
Its recommendations include expansion of cross-location bank sub-branches and wholly owned insurance agency companies beyond Guangdong, and allowing small- and medium-sized securities and futures companies and introducing brokers to enter the Mainland market.
It also proposes allowing the distribution of open-ended mutual funds that invested in Hong Kong-listed stocks on the Mainland, setting up a mutual recognition mechanism for investment funds, and relaxing restrictions on insurance companies to form joint ventures and to make portfolio investment on the Mainland.
