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HK to Extend Individual Visit Scheme

Hong Kong Chief Executive Donald Tsang said on Wednesday that the central authorities have given in principle approval to extend the scope of Renminbi (RMB) business in Hong Kong.

 

He made the announcement while delivering his Policy Address at the Legislative Council on Wednesday.

 

This includes raising the exchange limit between RMB and Hong Kong dollar per person per transaction, lifting the credit limit of RMB cards issued by banks in Hong Kong and relaxing the RMB remittance limit imposed on Hong Kong residents, he said.

 

The chief executive said the plans also includes the extending RMB settlement to designated merchants in more sectors and permitting designated merchants in Hong Kong to open RMB cash deposits accounts and exchange the RMB deposits one-way into Hong Kong dollars.

 

The central authorities have also endorsed in principle the operation of a new RMB business in Hong Kong, which will allow Hong Kong residents to issue RMB cheques for a limited amount exclusively for consumer spending within Guangdong Province, he added.

 

Tsang said the central authorities will soon finalize the arrangements and make an official announcement.

 

The chief executive believes that these new measures will definitely be an important impetus to the comprehensive development of the financial sector in Hong Kong.

 

The central authorities attach great importance to the role of Hong Kong as an international financial center. Four areas of RMB business have been opened up to Hong Kong banks under the first-phase arrangements. The operation of these services has proved very successful, as seen by a steady increase in RMB deposits, smooth transactions and a stable exchange rate.

 

As another measure of the central authorities for backing Hong Kong's economy, the Individual Visit Scheme for Chinese mainland residents to visit Hong Kong will also be extended to more Chinese mainland cities on a step-by-step.

 

Tsang said after discussion with the Chinese mainland authorities, from November 1 this year, the Scheme will be extended to four more Chinese mainland cities, namely Chengdu, Jinan, Shenyang and Dalian.

 

Tsang said the Individual Visit Scheme for Chinese mainland residents to visit Hong Kong has gone a long way towards boosting the local retail and job markets. Last year Hong Kong received a total of 4.2 million Chinese mainland visitors under the Scheme, bringing additional tourism receipts of around 6.5 billion HK dollars (US$833 million).

 

(Xinhua News Agency October 12, 2005)

 

HK Visitor Arrivals Exceed 1.7m in April
Individual Tour to Singapore to Open to 13 Chinese Cities
More Mainlanders Visit HK, Macao in First Quarter
HKTB Welcomes Further Expansion of Individual Visit Scheme
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