HK gov't working for more mainland access

(Xinhua)

09:38, July 18, 2013

HONG KONG, July 17 (Xinhua) -- To help the local financial industry gain further access to the Chinese mainland market, the Hong Kong government is working to ease restriction on the shareholding by financial institutions with Hong Kong capital in Hong Kong-invested securities companies in Qianhai, the city's official said Wednesday.

Hong Kong's Secretary for Financial Services & the Treasury K C Chan told the city's Legislative Council Wednesday that the government has been liaising with mainland authorities to help Hong Kong financial institutions gain access to the mainland market.

Under Supplement VI to the Mainland & Hong Kong Closer Economic Partnership Arrangement (CEPA), qualified Hong Kong and mainland securities companies can set up in Guangdong joint-venture securities investment advisory companies.

The company must be a subsidiary of the mainland securities company, and the percentage of shareholding by the Hong Kong securities company can reach one-third of the total shareholding of such a joint-venture securities investment advisory company.

Chan said the government has been working closely with mainland authorities in taking forward and enhancing the relevant measures.

"Under Supplement IX to CEPA, the shareholding by Hong Kong securities companies in joint-venture securities investment advisory companies has been increased to a maximum of 49 percent of the total shareholding, and the application of the measure has been expanded to cover the whole country."

He said the government hopes to help Hong Kong's financial industry gain access to the mainland market through Qianhai, lower the requirements for Hong Kong enterprises to enter the mainland market, and reduce the shareholding limitation on Hong Kong enterprises in joint-venture companies.

It will continue to maintain close liaison with mainland authorities to identify new business opportunities for Hong Kong financial institutions on the mainland, including relaxing the upper limit on their shareholding in joint venture companies, he said.

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