Updated at 3.21pm: Chief Executive Donald Tsang Yam-kuen on Wednesday announced an extension to the individual visit scheme for mainlanders coming to Hong Kong as well as a relaxation of yuan exchange limits. Mr Tsang was speaking at the Legislative Council, where he delivered his first policy address since he took office in June. The central government had, in principle, approved an extension to the scope of yuan business in Hong Kong, he said. ?This includes raising the exchange limit between RMB and Hong Kong dollar per person per transaction; lifting the credit limit of RMB cards issued by banks in Hong Kong,? explained Mr Tsang. The proposals included measures to relax the yuan remittance limit imposed on Hong Kong residents; extend yuan settlement to designated merchants in more sectors; and allowing designated Hong Kong merchants to open yuan cash deposit accounts and exchange the yuan deposits one-way into Hong Kong dollars. ?The central authorities will soon finalise the arrangements and make an official announcement,? he said. Mr Tsang said that from November 1, the Individual Visit Scheme would be extended to four mainland cities ? Chengdu, Jinan, Shenyang and Dalian. The government aimed to extend the scheme to Pan-Pearl River Delta provincial capitals not yet covered by the scheme. The Individual Visit Scheme began on July 28, 2003, to allow mainland travellers to visit Hong Kong on an individual basis. Last year, 4.2 million mainland visitors travelled to Hong Kong under the scheme, bringing additional tourism income of about $6.5 billion. He also announced new developments for the Closer Economic Partnership Arrangement, signed between Hong Kong and the mainland in June 2003. The arrangement was intended to reduce or eliminate tariffs and other barriers on goods being traded across the border. To let more Hong Kong products enjoy tariff-free access to China, Mr Tsang said his government was in talks with the central government over the launch of the Closer Economic Partnership Arrangements (Cepa) phase III. Mr Tsang said that with Cepa phase III, the services sectors covered by the existing Cepa could also benefit further.
