CEPA Supplementary Agreement six booster: HK-Guangdong Financial cooperation adds new son

"One more son" in the "honeymoon period".　　May 9, Vice Minister of Commerce, Jiang Zengwei, Hong Kong Special Administrative Region Financial Secretary John Tsang signed the "mainland and Hong Kong closer Economic Partnership Arrangement" (hereinafter referred to as CEPA Supplementary agreement VI). Under CEPA Supplementary agreement six, the mainland, on the basis of the original CEPA and the supplementary Agreement on Hong Kong's opening up of trade in services, agreed to launch 29 market opening measures covering 20 service areas, including "research and development" and "rail transport" as two new areas,　　The 20 services involved cover a number of important industries with development advantages in Hong Kong.　　CEPA is an agreement signed between the mainland of China and Hong Kong, but it has always been the subject of the HKSAR. About One-third of the measures in Guangdong ' first try '. Involving banks, securities, maritime transport, railway transportation, exhibition, public utilities, telecommunications, law and other 8 areas. Jiang Zengwei said that to help the Hong Kong industry to take advantage of this supplementary agreement earlier to enter the mainland market, Cepa Supplementary agreement six will be formally implemented from October 1 this year.　　3 months earlier than before. Last year, the central government proposed to support the service industry to expand the opening of Hong Kong and Macao in Guangdong first. In particular, the "Pearl River Delta region reform and development plan" to give the PRD ' first Test, scientific development ' power, in order to give full play to the positive role of CEPA injected new vitality, and then to establish the Guangdong-Hong Kong and Macao Metropolitan Circle provides a favorable opportunity.　　Feng, professor of economics at Jinan University, said to reporters. "Remote branch" attraction when the Shenzhen Metro line Line 4 adopts the "b0t" mode and introduces the investment, construction and operation of the MTR Corporation by franchising, the traditional mode of rail transit construction in the mainland is broken.　　In Guangdong Province, the deputy director of the Hong Kong and Macao office, Guangdong to promote the service industry to expand the opening of Hong Kong and Macao in Guangdong first trial joint office director Lio Jingshan that, in addition to a breakthrough in transport and logistics, deepen co-operation between Hong Kong and Guangdong is the urgent need to jointly deal with the financial crisis. Under CEPA Supplementary agreement six, the branch set up by the Hong Kong bank in Guangdong province will be allowed to apply for the establishment of an off-site branch in the province.　　In other words, when Hong Kong banks set up branches in Guangdong, they do not need to set up branches in the local area.　　It is understood that this commitment covers both the mainland corporate Bank of Hong Kong Banks and Hong Kong banks which have not set up corporate banks in the mainland but have branches in Guangdong province. A spokesman for the Hong Kong Government explained branches and sub-branches the biggest difference is the size of operating capital requirements are different, such as the opening of 1 branches of the operating capital requirements, ranging from 100 million to 300 million yuan, the sub-branches only 10 million yuan; Meanwhile, Cepa Supplementary agreement VI can reduce the cost of Hong Kong banks to expand their outlets in Guangdong province,　　Favorable banks to absorb more renminbi deposits. "The most immediate benefit of this new commitment is to broaden the scope of the business of the branch licence and to reduce the operating capital threshold for the expansion of the site," he said. "A bank insider told reporters that according to the currentPolicy permits, the Hong Kong Bank's branch licence in Guangdong can only apply for new city outlets and, if it is to enter other markets, a new branch licence should be applied to the CBRC.　　This is not only very stringent on the operating capital threshold, but also because the CBRC is sure of the total and pace of approvals for new branches, it is difficult to widen the market by setting up branches. The person introduced, the branch application is relatively easy. "Because the branch is not the nature of the independent operating agencies, financial, tax and other aspects of the unified management of branches, so more convenient supervision." According to the current provisions, the branch set up the application only to be reported all over the CBRC, although also faced with the examination and approval link silver monitoring system rhythm, but the overall is more simple than a branch licence application.　　"It is understood that so far, 14 banks in Hong Kong have set up branches in the mainland, 13 of which have branches in Guangdong and a total of 28 branches and 47 branches in the Guangdong province." "Guangdong Province is one of the provinces that absorb the most investment in Hong Kong, Macao and Hong Kong, with more than 58,000 Taiwan-funded enterprises, accounting for 64% of the total number of foreign-owned companies and the main force of foreign capital." For many years, Hong Kong's financial industry has formed a mutually supportive relationship with the manufacturing industry in the Pearl River Delta. "In Foshan, for example, although Standard Chartered, HSBC, East Asia and other foreign banks have been in Foshan to carry out financial operations, but there is no foreign bank in Foshan.　　Chaoxiaobin, director of the China Development International Research Center of the University of Hong Kong, analysed the reporter's analysis, as the Hong Kong-funded banks in Guangdong set up branches and sub-branches in Shenzhen and Guangzhou more than two cities, the PRD City, Hong Kong Enterprises in Hong Kong financial services there is a huge gap will benefit from this initiative.　　The reporter also learned from the Foshan Financial Affairs office concerned, at present, including the Bank of East Asia, Citic Ka Wah and other Hong Kong-funded banks have begun to communicate with the Local government branch establishment of related matters. But the current volatile financial market environment has led to a wait-and-see stance on the policy by many local banks. "This policy is of course beneficial to our business expansion, but the company should consider the current financial situation to make judgments."　　The head of the Guangzhou branch of the Hong Kong Capital Bank said to reporters.　　Chaoxiaobin believes that, in view of the relatively low branch establishment threshold and the impulse to draw deposits, after the elaboration of the Code of Practice, there will still be a lot of Hong Kong banks will apply for the establishment of remote branches. Securities Industry Limited into Guangdong CEPA Supplementary Agreement VI also stipulates that the Hong Kong securities companies in accordance with specific conditions and the mainland with the conditions of the establishment of a subsidiary companies can be established in Guangdong Province joint venture securities investment consultancy, specializing in securities investment consulting business, Hong Kong securities companies have the highest shareholding ratio of One-third.　　The Hong Kong securities market is also open to the mainland, and mainland securities companies eligible for approval by the CSRC may set up branches in Hong Kong according to the relevant requirements. In addition, the mainland and Hong Kong are currently actively studying the introduction of a "Trading Open-end index Fund" (ETF) in the mainland. In response, a spokesman for the Hong Kong Government explained that the measure was under study, and as to what type of listing would be taken, whetherThe establishment of a new index fund by the two exchanges will await the next round of consultations and the timetable is to be determined. "This will be an advance preview of the through train," he said. A securities analyst in Shenzhen, who declined to be named, said that although some mainland securities companies had already set up branches in Hong Kong, they were limited to local businesses, while mainland investors were still not very smooth about investing in Hong Kong equities, for example, such as the renminbi could not be freely convertible.　　In the agreement, through the introduction of the Hong Kong stock portfolio "Trading Open-end Index Fund", the basic solution to the mainland investor funds to buy Hong Kong stock issues. In this respect, some Hong Kong securities practitioners said that Cepa Supplementary agreement six only the Hong Kong securities companies in Guangdong to provide advisory services, but also with the mainland institutions joint ventures, it is difficult to attract Hong Kong people northward operation.　　The mainland is more open to the Hong Kong service sector northward. Feng also considered that the two years before the implementation of CEPA, but with the end of the transition period of China's accession to the WTO, similar CEPA concessions will be opened to more and more countries and regions, such as Taiwan is brewing with the mainland to sign similar or even more preferential ecfa,cepa policy of the advantage is fading.