At the meeting the two governments reviewed the progress of implementation of the 2012 Work Plan of the Framework Agreement on Hong Kong/Guangdong Co-operation (Work Plan) and drew up the 2013 Work Plan. The 84 co-operation items in the 2013 Work Plan basically cover all areas of Hong Kong/Guangdong co-operation.
In respect of individual areas of co-operation, the progress and direction for further co-operation are set out below:
Promoting early and basic achievement of liberalization of trade in services between Hong Kong and Guangdong
The objective of "early achievement of liberalization of trade in services with Hong Kong in 2014" announced by the Guangdong Province last year is of great significance to the development of trade in services between the two places.
Financial Co-operation
In the past year, cross-border RMB business between Guangdong and Hong Kong has continued to develop. RMB trade settlement conducted through Hong Kong in 2012 exceeded RMB 2,600 billion, of which over 20 per cent was contributed by RMB trade settlement between Guangdong and Hong Kong.
In addition, there has been good progress in cross-border RMB lending in Qianhai. Under the provisional rules on the management of cross-border RMB loans in Qianhai announced at the end of last year, companies which are registered in Qianhai and have substantial operation or investments in the area are allowed to borrow RMB from banks conducting RMB business in Hong Kong. The initiative will further enhance the cross-border use and circulation of RMB funds between the Mainland and Hong Kong, creating more opportunities in RMB loan business for Hong Kong banks.
There has also been considerable progress in other aspects of financial co-operation.
As at the end of last year, five Hong Kong-funded banks have set up a total of 39 sub-branches in Guangdong. A total of 136 Guangdong enterprises have been listed in Hong Kong, and the Hong Kong subsidiaries of seven securities companies, seven fund management companies and three futures trading companies of the Mainland have obtained licenses to carry out regulated activities in Hong Kong.
The two sides will continue to promote the development of cross-border RMB businesses this year. Consideration would be given to the further expansion of cross-border RMB lending to other parts of the Guangdong Province (including Nansha and Hengqin) and innovation and development of cross-border RMB business to allow participation by individuals in the two places.
The two sides will also promote mutual access to the insurance markets of the two places by supporting Hong Kong insurance companies to set up operation in Guangdong, and encouraging Guangdong enterprises to establish their captive insurers in Hong Kong. Also, the two sides will facilitate the setting up of joint-venture companies in the securities, advisory, fund and asset management sectors.
