Chief Executive of the Hong Kong Special Administrative Region Tung Chee Hwa said in Hong Kong Wednesday (Sept. 1) CEPA's real power will not be fully realized until Hong Kong's service sectors have become established on the Chinese mainland.

The Chinese Mainland/Hong Kong Closer Economic Partnership Arrangement (CEPA) has proved itself a major driver of Hong Kong's economy, but its real power will not be fully realized until the service sectors have become established in the mainland market, Tung said at a contract-signing ceremony for the design of the new Guangdong Museum project.

Tung said since the signing of CEPA in June last year, Hong Kong has been exploring with the Central Government ways of deepening and broadening the scope of cooperation between the two sides within the framework of the arrangement.

"Our efforts have paid off with the signing of the agreement of cooperation for the second phase of the implementation of CEPA last week," he said.

Under the deal, the mainland has agreed to grant preferential treatment to Hong Kong enterprises in eight new service areas. And for 11 of the 18 service sectors that already receive preferential treatment, restrictions will be further liberalized. These include legal, construction and medical services.

Editor: Olivia