HK investors cheer success of 'green passage'

CHINA'S first "green passage" for Hong Kong investors has been operating smoothly during a three-month trial and the results are quite encouraging, senior officials told a seminar yesterday.

The "green passage", set up in Shanghai's Pudong New Area in September, cuts red tape for Hong Kong investors and offers services from policy consultation to investment approval. It aims to enhance the cooperation between Shanghai and the Special Administrative Region through the Closer Economic Partnership Arrangement.

"The city's government has worked out a set of procedures to make the passage convenient and efficient for Hong Kong investors. The response so far has been quite good," said Jian Heping, vice chairman of Shanghai Foreign Economic Relations & Trade Commission, during the Fourth Shanghai-Hong Kong Metropolitan Development Seminar.

Frederick Ma, secretary for commerce and economic development of the SAR government, pointed out that "nearly half of Hong Kong investors choose Shanghai to start their business in the mainland."

From next year, Hong Kong will also enjoy wider investment access to the mainland's markets.

In June, the Ministry of Commerce signed the fourth supplementary accord to CEPA with the SAR government. Under the accord, which will take effect on January 1 next year, the Chinese mainland will grant access to 11 new industries to Hong Kong-based companies and introduce 40 liberalization measures in 28 services areas.

For example, Hong Kong banks with at least US$6 billion in assets will be allowed to buy stakes in Chinese lenders, compared with the previous US$10 billion minimum.

"The Chinese mainland has seen much closer relationship with Hong Kong under the framework of CEPA. Meanwhile, Hong Kong has also brought in much experience, boosting the growth of the mainland," said Sun Tong, deputy director with the ministry's Department of Taiwan, Hong Kong and Macau Affairs. "With the new agreement, we expect more fruits in the coming years."

The mainland imported US$1.07 billion worth of goods from the SAR by May this year, with tariff exemptions valued at 770 million yuan (US$102 million), according to China Customs.