Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)

Securities and Futures Services

CEPA I
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 II
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.

2007 Liberalization Measures (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.