China announced many preferential policies to support Social and Economic development of Hong Kong during the period of National Twelfth Five-Year Plan. The new policies aim to promote the development of Hong Kong in every aspect, also provide good opportunities for enterprises to develop business in China Mainland.
In the aspect of economy and trade, China will further to expand the openness for service trade of Hong Kong, achieve the liberalization of modern service trade between both parties. Meanwhile, China encourages enterprises with various ways to develop the market, including co-investment, syndicated tender and undertaking projects jointly. In addition, the system of perfect processing trade enterprise for selling internally will be set up to encourage the transition upgrade of raw material processing enterprises from Hong Kong.
In financial aspect, China will promote the combination of Hong Kong’s stock ETF (Exchange Traded Fund), meanwhile expand the pilot scope of RMB settlement for cross-border trade, thus to provide more convenience for using RMB to enterprises during their developing business in Hong Kong and making direct investment. In the future, Hong Kong will continue to function as the bridge for connecting China mainland and international market, providing opportunities and convenience for enterprises from both sides.
Apart from the new policies, the Government of China mainland has signed the “Closer Economic Partnership Arrangement” (hereafter refers to CEPA) in early 2003 with the Government of the Hong Kong Special Administrative Region, which provides the new opportunities for the enterprises from Hong Kong and abroad. Later on both parties have also signed several supplementary agreements.
The signing of CEPA agreement promoted the development of the trade between the mainland and Hong Kong. According to this agreement, the goods imported from Hong Kong in line with rules of origin enjoy zero tariff treatment issued by China mainland. Enterprises can set up their factories in Hong Kong, producing with those duty-free raw materials and parts from abroad and then import to the mainland without any tariff.
In the aspect of service trade, the broaden access mainland services trade under the newest agreement increased to 44. And for the facilitation of trade investments, the two parties agreed to enhance cooperation in many fields including facilitation of customs clearance, commodity inspection and quarantine, quality standards and food security, cooperation among SMEs, cooperation in the pharmaceutical industry, E-commerce, improvement of trade investments, legal transparency, intellectual property protection, co-branding, cooperative education, etc.
The new policies are good timing for business, whether for enterprises of China mainland, Hong Kong or enterprises from oversea.
Enterprise can take avail the liberalization of service trade as developing opportunity, to set up a Hong Kong company and invest mainland through the company, or make it as a window to develop international market. At the same time, you can rely on the international position of Hong Kong financial centre to open the bank account in high reputation foreign bank. It can assist you enhance the credit for international trade and achieve the convenience of cargo account settlement.
Any concerns about Hong Kong Company Formation, IPO in Hong Kong,Trademark Registration,Hong Kong Tax, Corporate Finance, etc, welcome to contact with Conpak CPA Limited http://www.conpak.com.
Tags:company formation,trademark registration
Tags:company formation,trademark registration
