Hong Kong, mainland expand CEPA again

An economic agreement between Hong Kong and the Chinese mainland will give Hong Kong enterprises more access to the mainland market, state media reported. The two sides have signed a fifth supplement to the Closer Economic Partnership Arrangement, first signed between the two sides in 2003. The new supplement will go into effect on January 1. It will expand access to 15 service sectors and open two more mining-related service sectors to Hong Kong businesses. For service sectors covered by the agreement, the mainland has agreed to exempt tariffs for all products of Hong Kong origin and allow preferential treatment to Hong Kong service suppliers. Under certain circumstances, mainland-incorporated banking institutions established by a Hong Kong bank can locate their data centers in Hong Kong. In the construction industry, the proportion of capital contributed by the mainland partners in joint ventures in the mainland will no longer be restricted.