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Following is a question by the Hon Sin Chung-kai and a reply by the Secretary for Commerce, Industry and Technology, Mr John Tsang, in the Legislative Council today (October 13):
Question:
The State Ministry of Commerce and the Hong Kong & Macau Affairs Office of the State Council jointly announced early last month a new investment facilitation policy for Mainland enterprises to invest in the Hong Kong and the Macau special administrative regions ("investment facilitation policy") so as to further encourage and support Mainland enterprises to invest in Hong Kong and Macau. In this connection, will the Government inform this Council:
(a) of the measures the relevant authorities will launch to tie in with the implementation of the investment facilitation policy, and the targets of these measures, as well as the result they anticipate;
(b) given that Mainlanders are required to apply for visas to enter Hong Kong, the policy on foreign exchange control is still in force, and as there are differences between the business rules and regulations in China and Hong Kong, of the relevant authorities' measures to facilitate Mainland enterprises to invest in Hong Kong; and
(c) whether the relevant authorities have considered amending the policy on investment migrants to tie in with the implementation of the investment facilitation policy; if they have, of the outcome of the consideration; if not, the reasons for that?
Reply:
Madam President,
The new investment facilitation policy of the Mainland (new policy) is an important step under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) in the respect of investment facilitation. The new policy expressly states that the Central People's Government (CPG) encourages and supports Mainland enterprises investing in Hong Kong. Under the new policy which has been implemented since 31 August 2004, the procedures for Mainland enterprises applying for investing in Hong Kong are more transparent, simplified and convenient.
My reply to the three parts of the question is as follows -
(a) In response to the new policy of the CPG, relevant government departments including Invest Hong Kong (InvestHK), the Hong Kong Economic and Trade Office in Guangdong and the Beijing Office as well as the Hong Kong Trade Development Council (TDC) will step up their promotional efforts to attract Mainland enterprises to invest in Hong Kong and to provide a full range of services to assist them to establish their operations in Hong Kong.
InvestHK has been providing one-stop service for enterprises investing in Hong Kong. To enhance its service, InvestHK has introduced a series of new initiatives, called "Invest Hong Kong One-stop Services", to provide convenient one-stop service for potential Mainland investors intended to use the Hong Kong platform for their global business.
The TDC will also enhance its services to help Mainland companies to use Hong Kong as a trade and service platform to reach out to the international markets. Through its network of 11 offices in the Mainland, TDC will gauge the views and needs of Mainland enterprises towards Hong Kong as their launch pad for global business and build up a databank of success stories of Mainland enterprises using the Hong Kong platform for their global business. These success stories will be featured in its media communications programme in the Mainland.
For our two offices in the Mainland, they will enhance their promotional and publicity efforts in response to the new policy and the initiatives of InvestHK and TDC.
(b) Companies registered in Hong Kong may apply to import quality personnel from the Mainland to work in Hong Kong under the Admission Scheme for Mainland Talents and Professionals. The Scheme has no sectoral restriction or quota. The candidate would be required to have a good education background and a confirmed offer of employment by a Hong Kong company with remuneration broadly commensurate with the prevailing market level for professionals in Hong Kong. Just like other registered companies in Hong Kong, Mainland enterprises registered in Hong Kong which need to employ eligible Mainland residents to come to work here may submit an application under the Scheme. The Scheme also allows multi-national corporations from all over the world (including the Mainland) with operations in Hong Kong to sponsor the entry of their employees for intra-company transfer to Hong Kong. The employee must be at managerial or professional level who has worked with the company for not less than one year and is paid market level remuneration. Furthermore, the number of intra-company transferees sponsored by a company at any one time should be reasonable when compared to its total employment and the nature of its business operation.
Concerning the foreign exchange control in the Mainland, as we understand it, the implementation of foreign exchange control in the Mainland is a national policy made in accordance with the overall economic development in the Mainland. The Mainland authority reviews its control over foreign exchange from time to time and relaxes the arrangements as appropriate. We will monitor the situation, in particular the difference between the policies on foreign exchange control and the business rules in the Mainland and Hong Kong. We will discuss with the Mainland authorities on further measures to promote investment of Mainland enterprise in Hong Kong when opportunities arise.
(c) Foreign exchange control is implemented in the Mainland. In addition, Mainland residents seeking to leave the Mainland must obtain prior approval from relevant Mainland authorities. Under these circumstances, our current immigration policy governing the entry of capital investment entrants and business operators are not applicable to Mainland residents. The SAR Government will continue to maintain close liaison with Mainland authorities and will consider, at an appropriate time, the feasibility of broadening the scope of these policies with a view to including Mainland residents.
Ends/Wednesday, October 13, 2004
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