Hong Kong Investment Immigration focuses on Hong Kong Financial updates: On the 29th, the Central People's Government and the Hong Kong Special Administrative Region Government signed the Supplementary Agreement No. 10 to the "Arrangement between the Mainland and Hong Kong on Establishing Closer Economic and Trade Relations" (CEPA), further relaxing market access conditions in several service trade sectors. This includes allowing Hong Kong-funded financial institutions that meet the conditions for establishing foreign-funded securities companies to set up a joint venture full-license securities company in Shanghai, Guangdong Province, and Shenzhen, with a maximum shareholding ratio of 51% for Hong Kong capital.
In the securities sector, Hong Kong-funded securities companies are allowed to apply for Qualified Foreign Institutional Investor (QFII) status based on the scale of securities assets managed by the group; eligible Hong Kong-funded financial institutions are permitted to establish joint venture fund management companies in the Mainland according to relevant regulations, with Hong Kong's shareholding ratio reaching over 50%. At the same time, support is provided for qualified Hong Kong insurers to participate in the operation of mandatory traffic accident liability insurance business in the Mainland; applications submitted by Hong Kong insurers will be considered and facilitated according to relevant regulations.
Furthermore, under the new supplementary agreement, Hong Kong banks operating in the Mainland can include third-party investors recognized as equivalent to Hong Kong investors when conducting RMB business for Hong Kong-funded enterprises, subject to approval.
Supplementary Agreement No. 10 includes 65 measures for the opening of service trade and 8 measures to enhance financial cooperation and facilitate trade and investment between the two regions. In the service trade sector, the Mainland will further open up 28 existing areas, including law, construction, computer, and real estate, and for the first time allow Hong Kong funeral service providers to invest in the Mainland in wholly-owned or joint venture forms, operating businesses related to memorial services and ash interment, excluding funeral homes with cremation functions.
In terms of trade and investment facilitation, both regions will further strengthen cooperation in commodity inspection and quarantine, food safety, quality standards, and intellectual property protection.
Gao Yan, Deputy Minister of Commerce, stated that Supplementary Agreement No. 10 has three highlights: first, it continuously increases the depth of CEPA's openness, achieving significant breakthroughs in certain areas; second, it broadens the ways of service provision; and third, it continues to increase the pilot content in Guangdong.