WORLD TRADE GATS/SC/39/Suppl.3
26February 1998
ORGANIZATION(98-0643)
Trade inServices
HONG KONG, CHINA
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
____________________
Thistextreplaces theFinancial Services section contained indocument
GATS/SC/39/Suppl.1.GATS/SC/39/Suppl.3
Page2HONG KONG SPECIAL ADMINISTRATIVE REGION OFCHINA
SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
FINANCIAL SERVICES
Mode 1/Mode 2
Thecommitments made withrespect tomode 1(cross-border supply) andmode 2(consumption abroad) supply offinancial services inscribed inthissection ofthe
Schedule donotsignify acommitment toallow aservice supplier from theterritory ofanother Member tosolicit business ortoconduct marketing inthe
Hong Kong Special Administrative Region (HKSAR) ofChina.
AllInsurance and
Insurance-Related Services
Life, accident andhealth
insurance services
Non-life insurance services(1) Unbound
(2) None other thanthatstatutory insurances
which include third party liability in
respect ofvehicles andvessels and
employer ’sliability insurance inrespect
ofemployees must bepurchased from an
insurer authorized inHKSAR.(1) Unbound
(2) Unbound
(3) None other thanthatonlyacompany or
anassociation ofunderwriters ispermitted
tocarry oninsurance business.(3) None other thanthatthechief executive
appointed bytheauthorized insurer should
normally reside inHKSAR.
Inthecaseoftheformer, commercial
presence must taketheform ofa
subsidiary, branch orrepresentative
office, although insurance business may
notbecarried outthrough a
representative office.
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.GATS/SC/39/Suppl.3
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Reinsurance andretrocession (1) None, provided thattheinsurance
company isacompany incorporated
outside HKSAR andhasnoagent nor
place ofbusiness inHKSAR.(1) Unbound
(2) None (2) Unbound
(3) None other thanthatonlyacompany or
anassociation ofunderwriters ispermitted
tocarry oninsurance business. Inthe
caseoftheformer, commercial presence
must taketheform ofasubsidiary,
branch orrepresentative office, although
insurance business maynotbecarried out
through arepresentative office.(3) None other thanthatthechief executive
appointed bytheauthorized insurer should
normally reside inHKSAR.
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
Services auxiliary toinsurance
(including broking andagency
services)(1) None other thanclaims settlement
services, except forsettlement ofclaims
under contracts ofgoods intransit
insurance entered intowholly outside
HKSAR inrespect ofgoods consigned to
HKSAR.(1) Unbound
(2) None (2) Unbound
(3) None (3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.GATS/SC/39/Suppl.3
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Banking andOther Financial
Services
(excluding insurance)
Acceptance ofdeposits andother
repayable funds from thepublic(1) Unbound
(2) None
(3) None other thanthatcommercial presence
must takethefollowing forms:
(a)Banks incorporated overseas may
apply foralicence tooperate afull
licensed bank orarestricted licence
bank intheform ofabranch subject
tothefollowing condition:(1) Unbound
(2) Unbound
(3) None other thanthatallauthorized
institutions (local oroverseas) must
appoint achief executive andnotlessthan
onealternative chief executive, whomust
normally reside inHKSAR.GATS/SC/39/Suppl.3
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Such banks maymaintain (i)offices
towhich customers have access
(physical orotherwise) forthe
purpose ofbanking business (or
deposit-taking business inthecaseof
arestricted licence bank) and/or for
thearranging orentering intoofany
other financial transactions inonly
onebuilding (“Office ”includes
automated teller machines orsimilar
terminal devices); and(ii)nomore
thantwoadditional offices (other
thananautomated teller machine or
similar device) towhich customers
andothers have access forthe
purpose ofanyother types of
business inaseparate building or
buildings. Such additional offices
mayconsist ofnotmore thanone
regional office andoneback office.
Thiscondition does notapply to
banks incorporated outside HKSAR
licensed before May 1978 inrespect
offulllicensed banks andbefore
April 1990 inrespect ofrestricted
licence banks.GATS/SC/39/Suppl.3
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(b)Limited companies incorporated by
overseas banks inHKSAR mayapply
foralicence tooperate asafull
licensed bank, restricted licence bank
ordeposit-taking company inthe
form ofasubsidiary withbranching
rights. Inthecaseofanapplication
forafullbanking licence, the
institution must have been an
authorized institution for
atleast tenyears andbeclosely
associated andidentified with
HKSAR. Overseas banks mayalso
acquire anexisting locally
incorporated bank withbranching
rights subject toconsent ofthe
Monetary Authority.
(c)Banks incorporated overseas may
alsosetuprepresentative offices in
HKSAR, butsuch offices are
prohibited from taking deposits and
undertaking banking business in
general.
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.GATS/SC/39/Suppl.3
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Lending ofalltypes, including
consumer credit, mortgage
credit, factoring andfinancing of
commercial transaction(1) Unbound
(2) None
(3) None(1) Unbound
(2) Unbound
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
Financial leasing (1) None
(2) None
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
Allpayment andmoney
transmission services(1) Unbound
(2) None
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.GATS/SC/39/Suppl.3
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Guarantees andcommitments (1) None
(2) None
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
Trading forownaccount orfor
account ofcustomers, whether on
anexchange, inan
over-the-counter market or
otherwise thefollowing:(1) Unbound
(2) None(1) Unbound
(2) Unbound
- Money market instruments
(cheques, bills, certificate
ofdeposits, etc.)
- foreign exchange
- derivative products
including futures and
options
- exchange rateandinterest
rateinstruments, including
products such asswaps,
forward rateagreements,
etc.
- transferable securities(3) None other thanthefollowing :
Only corporations incorporated in
HKSAR, ornatural persons born in
HKSAR orresident inHKSAR forfiveof
thepreceding seven years, orpartnerships
composed ofsuch persons, maybecome
members oftheStock Exchange of
Hong Kong Limited.2
Only corporations incorporated in
HKSAR maybecome members ofthe
Hong Kong Futures Exchange.(3) None other thanthatfordealing in
securities orcommodities futures, there is
aresidence requirement inHKSAR in
respect ofasoleproprietor, or,inthe
caseofapartnership orcompany, in
respect ofatleast onepartner ordirector,
whoisregistered asadealer.
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.
2Theresidence requirement formemberships canbewaived forpersons ofgood reputation withsubstantial experience ofdealing insecurities.GATS/SC/39/Suppl.3
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
Participation inissues ofall
kinds ofsecurities, including
underwriting andplacement as
agent (whether publicly or
privately) andprovision of
services related tosuch issues(1) Unbound
(2) None
(3) None(1) Unbound
(2) Unbound
(3) None other thanthatifregistration asa
dealer isrequired, asitisinthecaseof
public issues, thelimitations asfordealers
(above) shall apply.
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(4) Unbound
Asset management, such ascash
orportfolio management, all
forms ofcollective investment
management, pension fund
management, custodial
depository andtrust services(1) Unbound
(2) None
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.GATS/SC/39/Suppl.3
Page10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Advisory andother auxiliary
financial services onallthe
activities listed insubparagraph
5(a)(v) to(xv)oftheAnnex on
Financial Services, including
credit reference andanalysis,
investment andportfolio research
andadvice, advice on
acquisitions andoncorporate
restructuring andstrategy(1) None other thancommodity trading and
investment advisory service
(2) None
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
Provision andtransfer of
financial information, and
financial dataprocessing and
related software byproviders of
other financial services(1) None
(2) None
(3) None
(4) Unbound except assetoutinthe
Attachment on"Presence ofNatural
Persons" tothisSchedule.1(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitments onpresence ofnatural persons areconfined tobusinesses regulated under HKSAR banking, securities, insurance andrelated legislation.