Gateway to China
Hong Kong is a highly appealing trading partner and investment conduit for Mainland China. Regular flights and several new rail and road links ensure smooth and speedy travel across the border, while Hong Kong offers the benefits of a simple and low tax regime, free market policies, and free flow of information.
The Closer Economic Partnership Arrangement
(CEPA), which took effect at the beginning of 2004, provides Hong Kong with additional and monopolistic Mainland market access benefits. Furthermore, in August 2006, China and Hong Kong signed an arrangement that provides certainty and preferential tax treatment between the two tax jurisdictions, known as the "Arrangement for the Avoidance of Double Taxation on Income and Prevention of Fiscal Evasion". Thousands of international companies involved in China trade have chosen to establish their beachhead in Hong Kong.