CEPA and QDII

CEPA:
The Closer Economic Partnership Arrangement, or CEPA, is a free trade deal signed between Hong Kong and Mainland China. It offers favourable trading and investment conditions to Hong Kong-based companies interested in exporting goods, or expanding business, into Mainland China.

Importantly, CEPA is non-nationality specific. As long as you satisfy the CEPA criteria your company can benefit. This has made Hong Kong an attractive location for overseas companies interested in expanding into China in sectors that may otherswise have restrictions.

CEPA provisions cover three broad areas:

Trade in Goods
Almost all goods (1,047 product categories) which qualify as 'Made in Hong Kong' can be exported duty-free to Mainland China. Non-Hong Kong companies can benefit by outsourcing production or partnering with a manufacturer whose products satisfy the CEPA 'Rules of Origin'.

Trade in Services
CEPA covers a broad range of service sectors and reduces, or removes, geographical, financial and ownership restraints. This applies to a company of any nationality which satisfies the following criteria:
- Is incorporated in Hong Kong
- Has a three to five year operating history (depending on the sector)
- Is liable to pay Hong Kong tax
- Employs 50% of its staff locally

To fast-track your CEPA status, you may consider partnering with, or investing in, a company which is already CEPA qualified.

Trade & Investment Facilitation
Hong Kong and the Mainland China governments have agreed on a series of measures to make business between the two economies easier and more efficient. Meaures cover customs clearance, inspections and quality standardisation, e-business, transparency in legal issues and improving intellectual property protection.

QDII:
QDII (即Qualified Domestic Institutional Investors) 是認可本地機構投資者機制，是國家允許在資本帳項未完全開放的情況下，內地投資者向海外資本市場進行投資。QDII意味著將允許內地居民外匯投資境外資本市場，QDII將通過中國政府認可的機構來實施 。
數年前當中港簽定的 CEPA，巳開始研究如何開放內地居民投資外地的時機。 成 立 QDII機制是一種較為可行的辦法。世界上不少國家在資本項目未完全開放的情況下，會允許一些獲得批准的金融機構進行跨境投資。

自2006 年四月QDII法令出合已有數十間獲得批准的金融機構進行境外投資，金額超過100億人民幣，主要投資外國貨幣、債卷、基金等。最近中國的外匯儲備急漲，超越美元 10000 億，加重人民幣升值的壓力，須進一步拓展對外投資渠道，引導資金有序流出。

中國銀監會遂於日前宣布，擴大商業銀行開辦代客境外理財業務境外投資範圍，至境外證券交易所上市的股票，以進一步豐富代客境外理財產品投資品種，促進該項業務穩健發展。

Closer Economic Partnership Arrangement("CEPA")
Qualified Domestic Institutional Investor("QDII")