April 28, 2012

China allows Hong Kong, Macao grain traders

The Ministry of Commerce of China said Thursday (Apr 26) that it has permitted trial operation of fully Hong Kong-owned and Macao-owned grain traders in Guangdong, a province in south China.

The move is aimed at boosting economic ties between Hong Kong and Macao and the Chinese mainland and encouraging businesses from the two regions to set up merchandising enterprises on the mainland, according to a statement issued by the ministry.

A Hong Kong or Macao trader that has more than 30 outlets on the mainland and sells grain products of various types and brands from multiple suppliers can run as a solely-funded business in Guangdong, instead of being restricted by the 49-percent ceiling for overseas investment ratio in a mainland grain trader, the statement said.

The mainland signed Closer Economic Partnership Arrangements with Hong Kong and Macao in 2003 to promote economic cooperation with the two special administrative regions.

Actual use of Hong Kong investment on the mainland rose 16.4% on-year to US$70.5 billion in 2011, while that of Macao investment climbed 3.8% on-year to US$680 million, official data showed.