Supplementary Agreement to the Mainland and Hong Kong Closer Economic Partnership Arrangement

Signed: October 27 2004
Effective: as of date of signature

Main contents: The Supplementary Agreement was signed to further liberalize trade in goods and trade in services in the Mainland for Hong Kong. Hong Kong lawyers providing professional assistance at the request of Mainland law firms on the basis of individual cases will not be required to apply for a Hong Kong legal consultant permit. When Hong Kong accountants apply for a practising licence in the Mainland, the length of audit experience that they have acquired in Hong Kong is equivalent to the length of audit experience acquired in the Mainland. For construction enterprises set up in the Mainland by Hong Kong service suppliers, the construction contract performance of the enterprises both in the Mainland and outside the Mainland is taken into account in assessing the qualifications of the construction enterprises in the Mainland. Hong Kong service suppliers are allowed to establish, in the form of wholly-owned operations, commission agents, wholesale trade enterprises and retail trade enterprises in the Mainland in respect of books, newspapers, magazines, pharmaceuticals, pesticides and mulching films with effect from August 28 2004. Mainland branches of Hong Kong banks are allowed to conduct insurance agency business, subject to approval, with effect from November 1 2004. Intermediaries that are licensed with the Securities and Futures Commission of Hong Kong and that satisfy the requirements of the China Securities Regulatory Commission are allowed to set up joint venture futures brokerages in the Mainland. Hong Kong service suppliers are allowed to set up internet culture business work units and internet online service business premises in the Mainland with the Mainland party holding majority shareholding. Hong Kong service suppliers may also set up wholly owned companies in the Mainland to provide port cargo loading and unloading services.
Related legislation: Mainland and Hong Kong Closer Economic Partnership Arrangement, Jun 29 2003, CLP 2003 No.6 p7