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Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
Securities and Futures Services Liberalization Measures under CEPA
| CEPA |
| Sectors or sub-sectors |
7. Financial services |
|
B. Banking and other financial services |
|
Securities |
|
Specific commitments |
|
1. |
To allow the Hong Kong Exchanges and Clearing Limited to set up a representative office in Beijing. |
| 2. |
To simplify the relevant procedures for Hong Kong professionals1 applying in the Mainland for securities and futures industry qualifications. Hong Kong professionals applying to obtain securities and futures industry qualifications of the Mainland need only to undertake training and pass examination on Mainland laws and regulations; and examination on professional knowledge is not required. |
1In this sector, professionals refer to Hong Kong permanent residents who have been licensed by the Securities and Futures Commission of Hong Kong.
| CEPA
supplement |
| Sectors or sub-sectors |
7. Financial services |
|
B. Banking and other financial services |
|
Securities
Futures |
|
Specific commitments |
|
To allow intermediaries which are licensed with the Securities and Futures Commission of Hong Kong and which satisfy the requirements of the China Securities Regulatory Commission to set up joint venture futures brokerage companies in the Mainland. The percentage of shareholding owned by Hong Kong licensed intermediaries should not exceed 49% (including shareholding of related parties). Requirements in respect of the scope of business and amount of capital etc. of the joint venture futures brokerage companies shall be the same as those for Mainland enterprises. |
CEPA
supplement IV
(The establishment of subsidiaries in Hong Kong by Mainland fund management and securities companies) |
| Sectors or sub-sectors |
7. Financial services |
|
B. Banking and other financial services |
|
Securities |
|
Specific commitments |
|
1. |
To allow Mainland fund management companies approved by the China Securities Regulatory Commission to establish subsidiaries in Hong Kong to operate relevant businesses. |
| 2. |
The timeframe for Mainland securities companies wishing to establish subsidiaries in Hong Kong to complete registration in Hong Kong is extended from six months to one year. |
| CEPA
supplement VI |
| Sectors or sub-sectors |
7. Financial services |
|
B. Banking and other financial services |
|
Securities |
|
Futures |
|
Specific commitments |
|
To allow Hong Kong securities companies which satisfy the qualification requirements as foreign shareholders of foreign-invested securities companies and Mainland securities companies, which satisfy the requirements for establishing subsidiaries, to set up in Guangdong Province joint venture securities investment advisory companies. The joint venture securities investment advisory company shall be a subsidiary of the Mainland securities company, the scope of business of which shall focus specifically on carrying on securities investment advisory businesses. The percentage of shareholding of the Hong Kong securities company could, at a maximum, reach 1/3 of the total shareholding of such joint venture securities investment advisory company. |
| CEPA
supplement VII |
| Sectors or sub-sectors |
7. Financial services |
|
B. Banking and other financial services |
|
Securities |
|
Futures |
|
Specific commitments |
|
To deepen the co-operation between Mainland and Hong Kong in financial services and product development, it is agreed that ETF (open-end index-tracking exchange-traded fund), which portfolios are constituted by Hong Kong listed stocks, will be launched in the Mainland at an appropriate time. |
| CEPA
supplement VIII |
| Sectors or sub-sectors |
7. Financial services |
|
B. Banking and other financial services |
|
Securities |
|
Futures |
|
Specific commitments |
|
1. |
To continue to support qualified Mainland financial institutions engaged in securities activities to set up subsidiaries in Hong Kong and to operate businesses in accordance with law. |
|
|
|
2. |
To deepen cooperation between the Mainland and Hong Kong in financial services and products development, and to allow investments in the Mainland securities market by means of the RMB Qualified Foreign Institutional Investor scheme. |
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