However, high turnover and asset requirements for setting up a joint-venture retail business could be a barrier to smaller companies and fierce competition from world players is also expected. For wholesalers, there will be market access for the first time. Stringent turnover and asset requirements, and lack of expertise in national market distribution, especially for small and medium-sized enterprises, are possible challenges. Freight forwarding and logistics sector It can expand from international freight forwarding to domestic freight services, and also benefit from existing clientele of Hong Kong manufacturers in the mainland. They are advised to set up joint-ventures with local Chinese companies, and form alliance with new foreign entrants to tap more business.
Advertising Growing rapidly, China is the second largest advertising market in Asia.
Hong Kong companies, having the majority foreign control in advertising joint ventures in the mainland, have advantage over other players. This is the first time to have formal investment opportunities in the market, and there will be an opening-up of a wide range of services. Hong Kong's role as a telecommunications hub will be strengthened with more traffic generated between the mainland and overseas through Hong Kong. Financial services Hong Kong banks, the second-largest foreign banking group in the mainland, will benefit from further relaxation of rules on foreign banks conducting business in Rmb. Hong Kong-based banks also have the advantage of possessing a large clientele across the boundary thanks to Hong Kong's vast investment in the mainland.