RESTRICTED
WORLD TRADE S/FIN/W/12/Add.4/Rev.1
16September 1997
ORGANIZATION(97-3733)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM HONG KONG, CHINA
Revised Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest ofHong Kong, China tomembers
oftheCommittee onTrade inFinancial Services.
_______________
Further totheinitial offercontained inS/FIN/W/12/Add.4 dated 11July1997, theGovernment
oftheHong Kong Special Administrative Region (HKSAR) ofChina ispleased tosubmit theattached
revised offer onfinancial services.
Therevised offercontains technical amendments totheinitial offersubmitted byGovernment
oftheHKSAR on11July1997. Thepurpose isto:
(a) improve theheadnote withaviewtoclarifying thecommitments made withrespect
toMode 1(cross-border supply) andMode 2(consumption aboard) supply offinancial
services inscribed intheoffer; and
(b) simplify thelanguage usedintheofferwithout altering thevalue orsubstance ofthe
commitments.
Therevised offerisconditional andtheGovernment oftheHKSAR reserves therighttomodify
orwithdraw allorpartofthecommitments onorbefore 12December 1997.S/FIN/W/12/Add.4/Rev.1
Page2HONG KONG SPECIAL ADMINISTRATIVE REGION OFCHINA
REVISED OFFER OFFINANCIAL SERVICES -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
FINANCIAL SERVICES
Mode 1/Mode 2
Thecommitments made withrespect tomode 1(cross-border supply) andmode 2(consumption abroad) supply offinancial services inscribed inthissection ofthe
Schedule donotsignify acommitment toallow aservice supplier from theterritory ofanother Member tocarry onbusiness, holdouttocarry onbusiness orsolicit
business ortoconduct marketing intheHong Kong Special Administrative Region (HKSAR) ofChina.
AllInsurance and
Insurance-Related Services
Life, accident andhealth
insurance services(1) Unbound (1) Unbound
Non-life insurance services (2) None other thanthatstatutory insurances
which include third party liability in
respect ofvehicles andvessels and
employer ’sliability insurance inrespect
ofemployees must bepurchased from an
insurer authorized inHKSAR.(2) Unbound
(3) None other thanthatunder theInsurance
Companies Ordinance, onlyacompany or
anassociation ofunderwriters ispermitted
tocarry oninsurance business.(3) None other thanthatthechief executive
appointed bytheanauthorized insurer
authorized inHKSAR must appoint a
locally-based chief executive should
normally reside inHKSAR .
Inthecaseoftheformer, commercial
presence must taketheform ofa
subsidiary, branch orrepresentative
office, although insurance business may
notbecarried outthrough a
representative office.S/FIN/W/12/Add.4/Rev.1
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.14) Unbound
Reinsurance andretrocession (1) None, provided thattheinsurance
company isacompany incorporated
outside HKSAR which carries onin
HKSAR reinsurance andretrocession
business onlyandhasnoagent norplace
ofbusiness inHKSAR.(1) Unbound
(2) None (2) Unbound
(3) None other thanthatunder theInsurance
Companies Ordinance, onlyacompany or
anassociation ofunderwriters ispermitted
tocarry oninsurance business. Inthe
caseoftheformer, commercial presence
must taketheform ofasubsidiary,
branch orrepresentative office, although
insurance business maynotbecarried out
through arepresentative office.(3) None other thanthatthechief executive
appointed bytheanauthorized insurer
authorized inHKSAR must appoint a
locally-based chief executive should
normally reside inHKSAR.
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.S/FIN/W/12/Add.4/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Services auxiliary toinsurance
(including broking andagency
services)1) None other than:
(a)thatinsurance brokers andagents
must beregistered agents or
authorized insurance brokers; and
(b)claims settlement services, except for
settlement ofclaims under contracts
ofgoods intransit insurance entered
intowholly outside HKSAR in
respect ofgoods consigned to
HKSAR.(1) Unbound
(2) None (2) Unbound
(3) None unless thesupply ofanysuch
services canberegarded ascarrying on
orholding oneself outascarrying onany
class ofinsurance business inorfrom
HKSAR inwhich casethelimitations
assetoutunder "Life, accident andhealth
insurance services, non-life insurance
services ”,and“reinsurance and
retrocession ”(above) shall apply.(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.S/FIN/W/12/Add.4/Rev.1
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Banking andOther Financial
Services
(excluding insurance)
Acceptance ofdeposits andother
repayable funds from thepublic(1) Unbound
(2) None
(3) None other thanthatcommercial presence
must taketheform ofasubsidiary,
branch orrepresentative office, subject to
thefollowing :
(a) Under existing authorization criteria,
applications foranewfullbanking
licence from banks incorporated outside
HKSAR maybegranted forbranches
only. Such banks maymaintain (i)
offices towhich customers have access
forthepurpose ofbanking business
and/or forthearranging orentering into
ofanyother financial transactions inonly
onebuilding (“Office ”includes automatic
teller machines orsimilar terminal
devices). ;andSuch banks mayalso
maintain (ii)nomore thantwoadditional
offices (other thananautomatic teller
machine orsimilar device) towhich
customers andothers have access forthe
purpose ofanyother typeofbusiness ina
separate building orbuildings. Such
offices mayconsist ofnotmore thanone
regional office andoneback office.(1) Unbound
(2) Unbound
(3) None other thanthatallauthorized
institutions authorised under theBanking
Ordinance must appoint achief executive
andnotlessthanonealternative chief
executive, each ofwhom issubject toa
residence requirement whomust
normally reside inHKSAR.S/FIN/W/12/Add.4/Rev.1
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(b) Limited companies incorporated in
HKSAR which have been institutions
authorised under theBanking Ordinance
foratleast tenyears andareclosely
associated andidentified withHong Kong
mayalsoapply foranewfullbanking
licence.
(c) Banks incorporated overseas mayapply
foralicence tooperate arestricted
licence bank oradeposit-taking company.
Such restricted licence banks may
maintain offices towhich customers have
access forthepurpose ofthetaking of
deposits and/or thearranging orentering
intoofanyother financial transactions in
onlyonebuilding (“Office ”includes
automatic teller machines orsimilar
terminal devices). Such banks mayalso
maintain nomore thantwoadditional
offices (other thananautomatic teller
machine orsimilar device) towhich
customers andothers have access forthe
purpose ofanyother typeofbusiness ina
separate building orbuildings. Such
offices mayconsist ofnotmore thanone
regional office andoneback office are
subject tothesame provisions inpara
(a)(i) and(a)(ii) above.
Banks incorporated overseas mayalsoset
uprepresentative offices inHKSAR, but
such offices areprohibited from taking
deposits orfrom undertaking banking
business generally.S/FIN/W/12/Add.4/Rev.1
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(4) Unbound
Lending ofalltypes, including
consumer credit, mortgage
credit, factoring andfinancing of
commercial transaction.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
Allpayment andmoney
transmission services(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.S/FIN/W/12/Add.4/Rev.1
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Trading forownaccount orfor
account ofcustomers, whether
onanexchange, inan
over-the-counter market or
otherwise thefollowing:
- Money market instruments
(cheques, bills, certificate
ofdeposits, etc.)
- foreign exchange
- derivative products
including futures and
options
- exchange rateandinterest
rateinstruments, including
products such asswaps,
forward rateagreements,
etc.
- transferable securities(1) Unbound
(2) None
(3) None other thanthefollowing:
Only corporations incorporated in
HKSAR, ornatural persons born in
HKSAR orresident inHKSAR forfiveof
thepreceding seven years, orpartnerships
composed ofsuch persons, maybecome
members oftheStock Exchange ofHong
Kong Limited.2
Only corporations incorporated in
HKSAR maybecome members ofthe
Hong Kong Futures Exchange.(1) Unbound
(2) Unbound
(3) None other thanthatfordealing in
securities orcommodities futures, there is
aresidence requirement inHKSAR in
respect ofasoleproprietor, or,inthe
caseofapartnership orcompany, in
respect ofatleast onepartner ordirector,
whoisregistered asadealer.
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(4) Unbound
2Theresidence requirement formemberships canbewaived forpersons ofgood reputation withsubstantial experience ofdealing insecurities.
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.S/FIN/W/12/Add.4/Rev.1
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Participation inissues ofall
kinds ofsecurities, including
underwriting andplacement as
agent (whether publicly or
privately) andprovision of
services related tosuch issues.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(1) Unbound
(2) Unbound
(3) None other thanthatifregistration asa
dealer isrequired, asitisinthecaseof
public issues, thelimitations asfordealers
(above) shall apply.
(4) Unbound
Asset management, such ascash
orportfolio management, all
forms ofcollective investment
management, pension fund
management, custodial
depository andtrustservices.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.S/FIN/W/12/Add.4/Rev.1
Page10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Advisory andother auxiliary
financial services onallthe
activities listed insubparagraph
5(a)(v) to(xv)oftheAnnex on
Financial Services, including
credit reference andanalysis,
investment andportfolio research
andadvice, advice on
acquisitions andoncorporate
restructuring andstrategy.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
Provision andtransfer of
financial information, and
financial dataprocessing and
related software byproviders of
other financial services.(1) None
(2) None
(3) None
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutinthe
Attachment toGATS/SC/39.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.