Amendments to the Closer Economic Partnership Arrangement (CEPA) between mainland China and Hong Kong will boost insurance and other sectors, according to global law firm Clyde & Co.

The firm welcomed the upcoming amendments, which were signed in November and will come into effect on June 01, 2020.

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“The amendments include liberalising measures for key sectors including finance, insurance, legal services, tourism, construction, and engineering,” said Kevin Martin, corporate partner at Clyde & Co, based in Hong Kong.

According to Martin, the new liberalisation measures are encouraging for the professional services industries in particular, and show that the government remains committed to greater economic cooperation, particularly in the greater bay area.

“The reforms will allow more Hong Kong professionals to obtain relevant qualifications on the Mainland, while also providing greater market access for Hong Kong businesses,” he added. “It will make it easier for Hong Kong suppliers to set up business in Mainland China.

“For the insurance sector, requirements on the issuance of catastrophe bonds in the Hong Kong market will be relaxed. The amendments will assist in the development of the insurance and bond markets in Hong Kong, and would be welcomed by the sector overall.”