Top Biz News

HK gets wider access to mainland

By Qin Jize, Zhang Jin and Lilian Liu (China Daily)
Updated: 2006-06-30 08:32

Tsang said that the policies could include the issue of yuan bonds on a trial basis.

The mainland also plans to allow Hong Kong businesses to use renminbi to settle transactions, such as for  imports from the mainland.

"No matter whatever happens, the great motherland will always be there to uphold the prosperity and stability of Hong Kong and Macao," pledged Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference.

Highlighting CEPA's role, Tsang said it has helped the SAR recover strongly from the economic downturn following the Asian financial crisis in 1998 and the outbreak of the SARS epidemic in 2003.

"We estimate that in the first two years of its implementation, CEPA created 29,000 jobs, and generated HK$5.4 billion (US$701 million) in services receipts and HK$5.5 billion (US$714 million) in capital investment for Hong Kong," he said.

Chan Wai-kwan, senior director of business policy at the Hong Kong General Chamber of Commerce, said increased market access would definitely help companies expand their business in the mainland market.

Since the signing of the CEPA on June 29, 2003, the two sides have been working closely to broaden the scope and coverage of the arrangement. Agreements on further liberalization under the second and third phases of CEPA were reached in 2004 and last year.

All the liberalization measures  also apply to Macao, with minor differences due to its different economic structure.

The mainland and Macao signed the CEPA in October 2003.