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  • lovelydovz

    The Avanti Group Accounting Fraud, Redefining the role of Hong Kong as a financial hub

    5 years agoReply
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    China and Hong Kong Special Administrative Region (HKSAR) signed the 10th supplement to the Closer Economic Partnership Arrangement (CEPA X), at the end of August which covers measures to foster tighter cooperation in the financial services sector. What will it mean for the Hong Kong financial services sector? Will it change the fundamentals of Hong Kong’s asset management industry for better or worse?
    CEPA, the arrangement between the mainland and Hong Kong, is essentially a free trade agreement that offers Hong Kong products, companies and residents preferential access to the mainland market. The measures in this latest agreement will come into force at the beginning of 2014.

    Hong Kong financial secretary John Tsang and Chinese vice minister of commerce Gao Yan signed the 10th supplement to agreement at the end of August. Tsang say among the supplements made since the signing of CEPA in 2003, Supplement X contains the greatest number of measures.

    Some 28 business sectors have already been partly liberalised for Hong Kong exporters and services providers, including (among many others) construction, real estate, market research, banking, securities, transportation, freight forwarding, and trademarks. Companies in some 18 service industries enjoy varying degrees of improved access. In some areas, the concessions go further than China’s commitments under its accession agreements to the World Trade Organisation (WTO). Under various agreements, provided appropriate rules of origin conditions are met, Hong Kong goods in some 374 separate tariff codes can be exportable to the mainland free of duty.

    Specifically, Supplement X to CEPA provides covers some 73 separate areas of financial and manufacturing services of which some 65 involve measures liberalising the operation of financial services and eight others which “strengthen co-operation in areas of finance and facilitate trade and investment “ between mainland China and Hong Kong. One of the more important elements in this 10th round is that the mainland has agreed to assess the value of mutual recognition of fund products between the mainland and Hong Kong.

    Under this latest agreement the mainland has agreed to study the efficacy of introducing mutual recognition of fund products between the mainland and Hong Kong. Up to now the impact of CEPA on the Hong Kong securities industry has been relatively minor.

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    5 years ago
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