Closer partnership: Financial Secretary John Tsang and Vice-Minister of Commerce Jiang Zengwei sign Supplement VI to the Mainland-Hong Kong Closer Economic Partnership Arrangement, witnessed by Chief Executive Donald Tsang.

Supplement VI to the Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA) has been signed, expanding the total number of service sectors covered from 40 to 42.

The Mainland will introduce 29 liberalisation measures covering 20 sectors, including two new ones - research and development, and rail transport. The measures will come into force October 1.

Financial Secretary John Tsang and Vice-Minister of Commerce Jiang Zengwei signed the document today, witnessed by Chief Executive Donald Tsang, .  

On tourism, Mainland travel agents authorised to operate group tours to Taiwan can organise group tours for Mainland residents, who hold a valid exit-entry permit for travelling to and from Taiwan and travel endorsement, to enter and remain in Hong Kong in transit.

Hong Kong permanent residents with Chinese citizenship can obtain Mainland outbound tour escort credentials. They can be employed by Mainland international travel agents authorised to operate outbound group tours for Mainland residents, as well as by Hong Kong and Macau travel agents authorised to operate group tours to Hong Kong and Macau for Mainland residents.

Branches established by a Hong Kong bank in Guangdong Province can set up "cross-location" sub-branches within Guangdong. Hong Kong commercial banks can establish service points in other administrative areas without first establishing branches there.

Qualified Hong Kong securities companies and Mainland securities companies which satisfy the requirements for establishing subsidiaries can set up in Guangdong joint-venture securities investment advisory companies, with the scope of business focusing specifically on securities investment advisory services.

The percentage of shareholding of the Hong Kong securities company can, at a maximum, reach one third of the total shareholding of such a joint venture securities investment advisory company.

On audio-visual services, Hong Kong service suppliers can provide videos and sound recording distribution services on the Mainland in the form of wholly-owned operations. The post-production of domestic films can be processed in Hong Kong after obtaining the approval of the State Administration of Radio, Film & Television.

Hong Kong telecommunications services suppliers can distribute in Guangdong fixed or mobile telephone service cards which can only be used in Hong Kong.

Legal practice

The Mainland will allow Hong Kong legal practitioners who have at least five years' experience in legal practice and who have passed the National Judicial Examination to undergo intensive training offered by lawyers associations on the Mainland.

Upon passing the assessment they can apply to practise as lawyers on the Mainland. Hong Kong law firms which have set up representative offices on the Mainland will also be allowed to operate in association with Mainland law firms in Guangdong.

Hong Kong service suppliers can organise exhibitions in the form of cross-border supply, in Beijing, Tianjin and Chongqing Municipalities, and Zhejiang, Jiangsu and Fujian Provinces on a pilot basis.

Enterprises set up by Hong Kong service suppliers on a wholly-owned, equity joint venture or contractual joint venture basis in Guangxi, Hunan, Hainan, Fujian, Jiangxi, Yunnan, Guizhou and Sichuan can organise overseas exhibitions on a pilot basis. Participating enterprises should be registered enterprises in that province or autonomous region.

On transportation services, Hong Kong service suppliers can construct, operate and manage the Shenzhen Metro Line 4 project in the form of wholly-owned operations.

Hong Kong service suppliers can set up wholly-owned shipping companies on the Mainland to provide regular business services such as shipping undertaking, issuance of bills of lading, settlement of freight rates, signing of service contracts for shipping transport between Hong Kong and Class B ports in Guangdong operated by Hong Kong service suppliers using chartered Mainland vessels.

On printing and publishing services, Hong Kong service suppliers can establish typesetting and production services companies on a wholly-owned, equity joint venture or contractual joint venture basis on the Mainland to provide pre-press services such as proof-reading, design and typesetting for books.

Hong Kong service suppliers can set up wholly-owned enterprises on the Mainland to provide research and experimental development services in natural sciences and engineering.

Supplement VI to CEPA also includes nine measures for early and pilot implementation in Guangdong, covering sectors which include legal, convention and exhibition, public utility, telecommunications, banking, securities, maritime transport and rail transport.

Apart from service liberalisation, the two sides have also agreed to enhance financial co-operation and take forward work on mutual recognition of professional qualifications.

Qualified Mainland securities companies approved by the China Securities Regulatory Commission can form subsidiaries in Hong Kong. The Mainland will also actively explore the introduction of an "open-end index-tracking exchange-traded fund", the portfolios of which are constituted by Hong Kong listed stocks.

The supplement also includes a number of measures to encourage mutual recognition of professional qualifications as well as technical exchange work among professionals from the accounting, construction, real estate and printing sectors. Hong Kong pharmacists can sit for examination and register on the Mainland.

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