Hong Kong firms set to gain from Guangdong free-trade zone, but more details needed

The newly formed Guangdong Free Trade Zone will open up the transport, finance, travel and other sectors to Hong Kong companies and investors, according to the master plans that local industry insiders say still lack key details.

The Guangdong zone will cover 116 sq km - about a tenth the size of Hong Kong - taking in parts of Guangzhou's Nansha New Area, Qianhai and Shekou in Shenzhen, and Hengqin in Zhuhai.

Nansha will focus on the development of shipping and logistics, as well as specialised financial services, whereas Qianhai and Shekou will build up a range of innovative service industries, including information services. Hengqin will be entrusted with travel and leisure services.

The master plans, unveiled by the central government yesterday, stipulated that the promotion of service trade liberalisation in the Guangdong-Hong Kong-Macau zone would be deepened, adding that the regional market on the mainland would be further opened to the Hong Kong and Macau service sectors.

An increasing number of investment requirements will be removed or relaxed. Service providers from Hong Kong and Macau will be allowed to set up wholly owned international shipping companies in the pilot zone. Entrepreneurs from these two cities will also be able to offer overseas study services for self-financing students.

Up to five travel agencies from each of the two cities will be able to organise overseas tours for mainland residents. Medical professionals from Hong Kong and Macau will also be allowed to offer high-end services.