2009-05-11 Hong Kong
Supplement VI to the Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA) has been signed recently in Hong Kong, expanding the total number of service sectors covered from 40 to 42. Under the new supplemental CEPA pact, branches established by a Hong Kong bank in Guangdong Province can set up "cross-location" sub-branches within Guangdong and Hong Kong commercial banks can establish service points in Guangdong without first establishing branches there. A spokesperson for the government of the Hong Kong Special Administrative Region said that the most attractive point in the new pact is that it can help Hong Kong's banks expand business further in mainland China. In addition, qualified Hong Kong securities companies and Mainland securities companies which satisfy the requirements for establishing subsidiaries will be able to set up in Guangdong joint-venture securities investment advisory companies. 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.