Company executives and professionals said the new supplement to the Closer Economic Partnership Arrangement (CEPA), commonly known as CEPA III, would grant them a new head start in capturing business opportunities on the mainland.

Signed yesterday in Hong Kong, the free-trade pact will allow more products with Hong Kong origin to be exported to the mainland without tariffs starting from January 1.

Welcoming the further liberalization measures under CEPA III, analysts believe there will be more and more local enterprises eager to take a slice of the profits from the mainland's growing demand.

"These additional measures will offer new business opportunities on the mainland for Hong Kong enterprises, garment and watch manufacturers in particular," said Andes Cheng, an analyst from South China Research Ltd.

Local law firms and accounting houses will benefit most from the agreement, he added.

Under the new measures, a Hong Kong law firm that has set up a representative office is allowed to operate in association with a mainland law firm situated in the same province, autonomous region or municipality.

Professionals also said deregulations in CEPA III will help with their careers.

"I am pleased that the central government has striven to further loosen the rules," said a senior audit officer from Wise Pro Accounting and Taxation Services Company headquartered in Wan Chai.

He said he is preparing the nation's public exam in which he will gain an accounting licence from the authorities.

"It is really good. We will have a wider access to the mainland market," said the accountant, "But I can't get benefit by just sitting here. CEPA has opened a door of career opportunity for me, yet I have to enter it by myself."

Also, Hong Kong manufacturers try to make full use of the preferences under the arrangement.

Teamwise, a local maker of fashion goods and accessories, has moved 20 per cent of the company's production back to Hong Kong from its Guangdong factories since the implementation of CEPA. The move was designed to qualify for the "made-in-Hong Kong" label on its products.

"Actually Hong Kong is lacking in manufacturing facilities. It is hard to find local factories to do all the value-added production process," Kenny Leung, Teamwise marketing manager, told China Daily earlier.

But zero tariffs and the added value generated by the "made-in-Hong Kong" label make the move worthwhile, said Leung.

Dennis Guo, senior marketing manager from Hybribio Ltd, said he is glad to see the definition of "made-in-Hong Kong" has been loosened in CEPA III.

"I have been waiting for further liberalization measures. I believe the agreement would be very useful for Hong Kong pharmaceutical factories if it can allow them to further minimize the production process in Hong Kong."

Editor: Yan