2015年CRI Hong Kong and Mainland Sign New Pact in Service Trade（在线收听）

Finance officials from both sides have signed the Agreement on Trade in Services under the framework of the Mainland and Hong Kong Closer Economic Partnership Arrangement.

A previous agreement the Special Administrative Region signed last year with neighboring Guangdong province will now be expanded to the entire country, which allows almost all local services to enjoy preferential treatment, such as legal, accounting, banking, telecommunications, culture and entertainment.

John Tsang is Hong Kong's Financial Secretary.

"In general, 153 sectors in the mainland have had fully or partially opened up to Hong Kong's services industry, accounting for 95.6% of all the World Trade Organization services trade sectors. In respect of the mode of "commercial presence", national treatment will be applied to Hong Kong in 62 sectors. The simplified measures will make it easier for Hong Kong companies to open up businesses in the mainland."

At the same time, China's Vice Minister of Commerce Wang Shouwen has specified that any preferential treatment the mainland accords to other countries or regions would be extended to Hong Kong if it is more preferential than CEPA.

"The mainland has a huge market with great development in terms of service industry, while Hong Kong is very competitive in this regard. So the new agreement would put Hong Kong at an advantage."

Hong Kong SAR deputy to the National People's Congress Prof. Priscilla Lau says it brings along great opportunities to Hong Kong professionals, especially in the financial sector.

"93 percent of our GDP is in the service sector. If we want to strengthen our link with the mainland, it is necessary to have liberalization of the service sector. We have a lot of financial products in RMB. If we want to have RMB to go international, to become convertible and be accepted by international financial sector, it is important to expand our business within the mainland."

She also mentions that Hong Kong could play a key role in raising capital, boosting trade and services to implement "One Belt, One Road" initiative put forward by the Central Government.

The new pact will be effective from June next year,

CEPA was first signed in 2003, aiming to open up the mainland market to Hong Kong companies by removing tariffs and investment restrictions while promoting mutual recognition of professional qualifications.

For CRI, this is Li Jing in Hong Kong.