Financial liberalization to combat the financial turmoil: Why is CEPA seven premature for three months? Hong Kong is in emergency!

The "mainland and Hong Kong closer Economic Partnership Arrangement" Supplementary Agreement six (hereinafter referred to as CEPA Seven) was signed in Hong Kong 9th.　　Under the haze of the financial crisis, CEPA Seven will be implemented 3 months ahead of the previous years, with a focus on finance to further expand the mainland's openness to Hong Kong to help Hong Kong cope with the financial crisis. At the same time, Cepa Seven implementation of the "Big Pearl River Delta Development Framework", a number of areas of open measures in Guangdong, "first try" to promote economic and trade cooperation between Hong Kong and Guangdong.　　The analysis thinks, although Hong Kong service industry enters Guangdong, temporarily cannot alleviate the pressure that the export of the Pearl River Delta Enterprise drops, but can help them to open the domestic market in the trade, the logistics and so on. To further expand the opening of the mainland to Hong Kong with the emphasis on finance the CEPA seven further expanded the mainland's openness to Hong Kong, including the opening of trade in services, financial cooperation and the recognition of the qualifications of the professional field in three areas, on the basis of the five supplementary agreements.　　The contents of the original service trade field are further deepened, and on the original basis, further measures such as relaxing market access conditions, removing main body restrictions, relaxing business scope and simplifying approval procedure are further adopted. CEPA Seven introduced 29 market opening measures covering 20 service areas, covering a number of important industries with development advantages in Hong Kong, including tourism, banking, securities, exhibition, law, transport and creative industries, including the addition of two areas of "research and development" and "rail transport".　　As a result, the total number of service areas covered by CPEA increased from 40 to 42. The Hong Kong banking and securities industry has become a major beneficiary of CEPA's seven support for Hong Kong's financial sector. According to previous rules, a bank must have a branch in each city before it can open a branch. Under the new arrangement, the Hong Kong bank will be able to open branches in other parts of the province as long as a branch in Guangdong Province is established.　　The new measures will help Hong Kong banks to reduce costs significantly, set up more branches, expand the deposit base and facilitate the processing of capital transactions between the PRD and Hong Kong Enterprises. Securities, after the implementation of the new agreement, Hong Kong Securities Bank can be set up in Guangdong Joint Venture Securities bank, up to One-third of the shares. A spokesman for the Hong Kong government said that the companies concerned could only invest in consultation and not buy and sell securities.　　But Li Yao-wan, chairman of the Securities Brokerage Association, is optimistic that it will be allowed to buy and sell stocks in the future.　　In addition, the agreement also indicated that it would actively study the introduction of Hong Kong stock Exchange ETFs in the mainland so that mainland residents could invest in Hong Kong stocks indirectly. Signed 3 months in advance to help Hong Kong to cope with the financial crisis the signing and implementation of seven of the Cepa is a full 3 months earlier than usual practice. For that reason, China's vice minister of Commerce, Jiang Zengwei, said clearly: "To support Hong Kong's response to the financial crisis." Jiang Zengwei pointed out that the signing of Cepa Seven, "In line with Hong Kong's consolidation of the status of international finance, trade and shipping and the demand for modern services, will promote the further development of Hong Kong's economy." He said that in order to help the Hong Kong industry to take advantage of the supplementary agreement earlier to enter the mainland market, with the approval of the central government, Cepa Seven was signed in advance. And in October this yearLaunched 1st. Compared with the previous year's Day, the practice of three months earlier.　　After the signing of the agreement, the relevant mainland departments will seize the time, and actively do the relevant laws and regulations of the revision work. The chief executive of Hong Kong, Mr Donald Tsang, said Hong Kong's economic environment was grim in the face of the global financial crisis.　　The new open measures will be the effective way to promote economic development between the two places, and also the important outlet for the two sides to resist the financial tsunami. And seven of the content of Cepa is more prominent to Hong Kong's support than in previous years.　　Mr Tsang said the supplementary agreement was quite substantial and covered a number of important industries in Hong Kong, such as tourism, banking, securities, exhibitions, law, transport and creative industries.　　Implement the outline of the Pearl River Delta Guangdong first try to help Hong Kong cope with the financial crisis, another seven of Cepa's "mission" is to promote the integration of the Pearl River Delta, Guangdong first trial of the field greatly expanded, the depth is also a great breakthrough. Jiang Zengwei pointed out that according to the State Council approved the "Pearl River Delta region reform and Development plan", the agreement proposed Guangdong province "first try" measures. At present, in 8 areas of law, Convention and Exhibition, Public utilities, telecommunications, banking, securities, shipping and rail transport, a total of 9 "first-try" measures in Guangdong Province have been taken.　　Of the 29-body measures taken in 20 domains of trade in services, about 1/3 were "first tried" in Guangdong. The Hong Kong industry has been supported by the nectar.　　The majority of members of the Federation of Hong Kong Industries in the PRD, the chairman of the Chen, said that the open market and the facilitation of investment measures in the agreement could bring new business opportunities to various industries in Hong Kong. But what will Guangdong get in addition to benefiting Hong Kong's economy? In this regard, Comprehensive Development Research Institute (Shenzhen) deputy Dean Guo Wanda told this newspaper, Guangdong Enterprises are also facing difficulties, but the root is the export orders atrophy, this point, Cepa Seven can not help. The significance of Hong Kong's service industry entering Guangdong is to enliven the Guangdong economy and, in the long run, to promote the transformation and upgrading of the PRD enterprises.　　Although the current focus of Guangdong economy is not the transformation and upgrade but the growth, but the entry of Hong Kong logistics, Law and other service-oriented enterprises can still have a positive interaction with the production-oriented enterprises in Guangdong.　　Lau, vice chairman of the Federation of Hong Kong Industries, told the newspaper that although many of the concessions of Cepa seven were not aimed at production-oriented enterprises, he believed that they could help the PRD in the areas of trade, logistics and law, and help them to open up domestic and emerging markets.　　Geographical depth Cepa has brought significant benefits to Hong Kong economy since the signing of CEPA for more than six years, this arrangement has already brought tangible benefits to Hong Kong economy.　　The chief executive of Hong Kong, Mr Donald Tsang, said that the latest preliminary assessment showed that the CEPA service trade and the "personal travel" scheme had created 43,200 jobs for Hong Kong residents under the "personal travel" scheme, with an additional consumption of more than HK $58 billion for visitors. He said that over the same period, Cepa had generated about HK $46 billion in Hong Kong's service providers ' operations in the mainland, and the mainland had also created 49500 positions.　　In addition, after the first confirmed case in Hong Kong, the number of Guangzhou-Hong Kong-Macau tour registered a year-on-year decline of about 30%. Therefore, Mr Tsang has high hopes for Cepa seven, saying that the new liberalisation measures will be the effective way to promote economic development between the two places, and also an important outlet for the two sides to fight the financial tsunami.