More than 1,100 Hong Kong people have been approved to set up individually owned stores in Guangdong in China's mainland to provide retailing services, with a total investment exceeding 49 million yuan (5.93 million US dollars).

Hong Kong's Secretary for Commerce, Industry and Technology John Tsang made the announcement to the Legislative Council Wednesday in response to a legislator's questions.

He said that pursuant to the "Mainland and Hong Kong Closer Economic Partnership Arrangement" (CEPA), as from Jan. 1, 2004, Hong Kong permanent residents with Chinese citizenship may set up,in accordance with the relevant laws, regulations and administrative rules of the mainland, individually owned stores in Guangdong Province which is adjacent to Hong Kong, to provide retailing services, without being subject to the approval procedures applicable to foreign investments.

After consultation, the Chinese central government and the Hong Kong Special Administrative Region government signed the supplementary agreement to CEPA on Oct. 27 this year to further liberalize a number of sectors.

In respect of individually owned stores, as from Jan. 1, 2005, Hong Kong people will also be allowed to set up such stores in the provinces and cities outside the Guangdong Province, and to provide retailing services; food and beverage services; hair dressing, beauty treatment and health care services, bathing services and repair services of home electrical appliances and other goods for daily uses under residents and other services.

Through the CEPA Expert Group on Services Implementation under the Guangdong/ Hong Kong Cooperation Joint Conference and other channels, the Hong Kong government is in constant touch with the Guangdong authorities with a view to seeking information pertaining to the operation and progress of individually owned stores set up by Hong Kong people, Tsang noted.

Source: Xinhua