The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement ever concluded by the Mainland of China and Hong Kong. The main text of CEPA was signed in 2003 and the agreement came into force in 2004.
CEPA opens up huge markets for Hong Kong goods and services, greatly enhancing the already close economic cooperation and integration between the Mainland and Hong Kong. In brief, the Mainland has applied zero import tariff for exports from Hong Kong meeting CEPA origin rules for goods and preferential market access for Hong Kong companies in 47 service sectors, including banking, logistics, legal, audiovisual, transport and mining.
More details can be found here.
Overseas companies may also benefit from CEPA in various ways. Investors can set up a service company in Hong Kong, partner with, invest in or even acquire service suppliers in Hong Kong to make full use of CEPA opportunities. Please click here to see more details on the advantages that Hong Kong can offer you.