In a significant move towards economic integration, the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and mainland China has been amended and expanded. Originally signed in 2003, the latest amendments were finalized on October 9, 2024, and will take effect on March 1, 2025. This expansion now includes 153 service sectors and introduces several key changes aimed at facilitating greater access for Hong Kong companies to the mainland market. Financial Secretary Paul Chan Mo-po and Li Yongjie from the Ministry of Commerce were present for the signing, highlighting the importance of this agreement [df88f3ab].
The amendments to CEPA allow Hong Kong companies to apply Hong Kong laws to their operations in mainland China, which is expected to benefit businesses with less than three years of experience. The sectors included in this expansion encompass banking, insurance, telecommunications, tourism, film, television, and construction, thereby easing qualification requirements and reducing market access thresholds [df88f3ab].
In addition to the CEPA changes, the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) Cross-Boundary Wealth Management Connect Pilot Scheme was announced on November 1, 2024. This initiative will allow 14 Hong Kong brokers to participate, further integrating the financial markets of Hong Kong and Macau with mainland China [df88f3ab].
Vice Premier He Lifeng emphasized Hong Kong's pivotal role as an international financial center during a speech on November 19, 2024, reinforcing the city's strategic importance in China's broader economic liberalisation efforts. These measures are anticipated to not only bolster Hong Kong's economy but also significantly benefit Macau, particularly in the tourism sector [df88f3ab].
As Hong Kong and Macau navigate these changes, they are positioned as crucial players in China's economic liberalisation and the internationalisation of the Renminbi. The focus on enhancing economic ties within the region reflects a strategic shift towards fostering greater collaboration and resilience against external economic pressures [df88f3ab].