Closer ties between the Chinese Mainland and Hong Kong are set to benefit SMEs and other businesses in the SAR, according to the Hong Kong General Chamber of Commerce.

Following the Forum on the National 12th Five-Year Plan (FYP) and Economic, Trade and Financial Co-operation and Development Between the Mainland and Hong Kong, the HKGCC welcomed measures designed to support Hong Kong's development as an offshore Renminbi (RMB) business centre and an international asset management centre as well as to assist its participation in the development of the services sector in China.

Major policy plans include allowing Hong Kong stocks-linked exchanged traded funds (ETFs) to be listed on the Mainland stock exchange, allowing qualified foreign institutional investors (QFII) to invest in domestic securities, liberalizing trade in services in the Mainland for Hong Kong enterprises in the late FYP period, continuing to issue bonds in Hong Kong and supporting Hong Kong to develop into a RMB offshore centre.

Commenting on the impact of these measures for SMEs, Chairman of HKGCC, Anthony Wu observed that:“Hong Kong’s development into China’s main offshore financial centre will help lower the cost of cross-currency transactions. In addition, the increases in options for RMB-denominated investment instruments will also help SMEs better manage their cash flows and exchange rate risks.”

He continued: “Over the years, the Chamber has been devoted to promoting the liberalization and implementation of CEPA. We also closely monitor the formulation of the FYP and timely reflect the views of business community to the HKSAR and Central governments. We are pleased many of our suggestions have been adopted by the State. Especially, according to the official announcement, the Mainland will further liberalize the medical, architectural, legal and testing and certification sectors, and strengthen the early and pilot implementation of CEPA in Guangdong Province. These measures will increase the opportunities for Hong Kong business to enter the Mainland market, and allow them to fully capitalize on their advantages.”

Meanwhile, figures released by the Companies Registry last month have revealed that the number of companies registered in the jurisdiction continued to rise in the first half of the year, with 912,242 small and large entities registered as at the end of June 2011

"The number of new companies incorporated continued to rise in the first six months of this year, with a monthly record averaging around 13,000," announcedthe Registrar of Companies, Ada Chung.

Commenting on the continuing development of electronic services for businesses looking to set up in Hong Kong, Ms Chung revealed that: "With the introduction of the one-stop electronic company incorporation and business registration service at the new e-Registry platform since March 18, 2011, electronic Certificates of Incorporation and Business Registration Certificates can be issued in one go in less than 24 hours. As at the end of June, 5,576 companies were incorporated online."