RESTRICTED
WORLD TRADE GATS/SC/39/Suppl.1
28July1995
ORGANIZATION
(95-2234)
Trade inServices
HONG KONG
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
____________________
This textreplaces theFinancial Services section contained inpages 15to23of
document GATS/SC/39.HONG KONG -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
FINANCIAL SERVICES
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 inrespect of
vehicles andvessels and
employer 'sliability insurance
inrespect ofemployees must
bepurchased from aninsurer
authorized inHong Kong.(1) Unbound
(2) Unbound
GATS/SC/39/Suppl.1
Page1HONG KONG (continued)GATS/SC/39/Suppl.1
Page2
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Reinsurance and
retrocession(3) None other thanthatunder the
Insurance Companies Ordinance,
onlyacompany oranassociation
ofunderwriters ispermitted to
carry oninsurance business. In
thecaseoftheformer,
commercial presence must take
theform ofasubsidiary, branch
orrepresentative office, although
insurance business maynotbe
carried outthrough a
representative office.(3) None other thanthataninsurer
authorized inHong Kong must
appoint alocally-based chief
executive.
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Services auxiliary to
insurance (including
broking andagency
services)(1) Unbound
(2) None
(3) None unless thesupply ofany
such services canberegarded as
carrying onorholding oneself out
ascarrying onanyclass of
insurance business inorfrom
Hong Kong inwhich casethe
limitations assetoutunder "Life,
accident andhealth insurance
services, non-life insurance
services, andreinsurance and
retrocession" (above) shall apply.
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None
(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.
GATS/SC/39/Suppl.1
Page3HONG KONG (continued)GATS/SC/39/Suppl.1
Page4
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Banking andOther
Financial Services
(excluding insurance)
Acceptance ofdeposits and
other repayable funds from
thepublic(1) Unbound
(2) None
(3) None other thanthatcommercial
presence must taketheform ofa
subsidiary, branch or
representative office, subject to
thefollowing:(1) Unbound
(2) Unbound
(3) None other thanthatinstitutions
authorised under theBanking
Ordinance must appoint achief
executive andnotlessthanone
alternative chief executive, each
ofwhom issubject toaresidence
requirement inHong Kong.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Under existing authorization
criteria, applications foranew
fullbanking licence from banks
incorporated outside Hong Kong
maybegranted forbranches
only. Such banks maymaintain
offices towhich customers have
access forthepurpose ofbanking
business and/or forthearranging
orentering intoofanyother
financial transactions
GATS/SC/39/Suppl.1
Page5HONG KONG (continued)GATS/SC/39/Suppl.1
Page6
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
inonlyonebuilding ("Office"
includes automatic teller machines
orsimilar terminal devices).
Such banks mayalsomaintain no
more thantwoadditional offices
(other thananautomatic teller
machine orsimilar device) to
which customers andothers have
access forthepurpose ofany
other typeofbusiness ina
separate building orbuildings.
Such offices mayconsist ofnot
more thanoneregional office and
oneback office.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Limited companies incorporated
inHong Kong which have been
institutions authorised under the
Banking Ordinance foratleast
tenyears andarepredominantly
beneficially owned byHong Kong
interests orareotherwise closely
associated andidentified with
Hong Kong mayalsoapply fora
newfullbanking licence.
Banks incorporated overseas may
apply foralicence tooperate a
restricted licence bank ora
deposit-taking company. Such
restricted licence banks may
maintain offices towhich
customers have access forthe
GATS/SC/39/Suppl.1
Page7HONG KONG (continued)GATS/SC/39/Suppl.1
Page8
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
purpose ofthetaking ofdeposits
and/or thearranging orentering
intoofanyother financial
transactions inonlyonebuilding
("Office" includes automatic teller
machines orsimilar terminal
devices). Such banks mayalso
maintain nomore thantwo
additional offices (other thanan
automatic teller machine or
similar device) towhich
customers andothers have access
forthepurpose ofanyHONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
other typeofbusiness ina
separate building orbuildings.
Such offices mayconsist ofnot
more thanoneregional office and
oneback office.
Banks incorporated overseas may
alsosetuprepresentative offices
inHong Kong, butsuch offices
areprohibited from taking
deposits orfrom undertaking
banking business generally.
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.
GATS/SC/39/Suppl.1
Page9HONG KONG (continued)GATS/SC/39/Suppl.1
Page10
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector 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
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None
(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Allpayment andmoney
transmission services(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None
(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.
GATS/SC/39/Suppl.1
Page11HONG KONG (continued)GATS/SC/39/Suppl.1
Page12
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the- counter market
orotherwise thefollowing :
-Money market
instruments (cheques,
bills, certificate of
deposits, etc.)
-foreign exchange
-derivative products
including futures and
options(1) Unbound
(2) None
(3) None other thanthefollowing:
Only corporations incorporated
inHong Kong, ornatural
persons born inHong Kong or
resident inHong Kong forfive
ofthepreceding seven years,
orpartnerships composed of
such persons, maybecome
members oftheStock
Exchange ofHong Kong
Limited.4(1) Unbound
(2) Unbound
(3) None other thanthatfor
dealing insecurities or
commodities futures, there isa
residence requirement inHong
Kong inrespect ofasole
proprietor, or,inthecaseofa
partnership orcompany, in
respect ofatleast onepartner
ordirector, whoisregistered
asadealer.
4Theresidence requirement formemberships canbewaived forpersons ofgood reputation withsubstantial experience ofdealing insecurities.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-exchange rateand
interest rateinstruments,
including products such
asswaps, forward rate
agreements, etc.Only corporations incorporated
inHong Kong maybecome
members oftheHong Kong
Futures Exchange.
-transferable securities (4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.
GATS/SC/39/Suppl.1
Page13HONG KONG (continued)GATS/SC/39/Suppl.1
Page14
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Participation inissues ofall
kinds ofsecurities,
including underwriting and
placement asagent (whether
publicly orprivately) and
provision ofservices related
tosuch issues.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None other thanthatif
registration asadealer is
required, asitisinthecaseof
public issues, thelimitations as
fordealers (above) shall apply.
(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Asset management, such as
cashorportfolio
management, allforms of
collective investment
management, pension fund
management, custodial
depository andtrust
services.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None
(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.
GATS/SC/39/Suppl.1
Page15HONG KONG (continued)GATS/SC/39/Suppl.1
Page16
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Advisory andother
auxiliary financial services
onalltheactivities listed in
subparagraph 5(a)(v) to(xv)
oftheAnnex onFinancial
Services, including credit
reference andanalysis,
investment andportfolio
research andadvice, advice
onacquisitions andon
corporate restructuring and
strategy.(1) Unbound
(2) None
(3) None
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None
(4) Unbound
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.HONG KONG (continued)
Modes ofsupply: (1) Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Provision andtransfer of
financial information, and
financial dataprocessing
andrelated software by
providers ofother financial
services.(1) None1
(2) None
(3) None
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers and
specialists assetoutinthe
Attachment.3(1) Unbound
(2) Unbound
(3) None
(4) Unbound
1Commitment excludes cross-border supply ofinternational value-added orbasic telecommunications services.
3Commitments onpresence ofnatural persons areconfined tobusinesses regulated under Hong Kong banking, securities, insurance andrelated legislation.
GATS/SC/39/Suppl.1
Page17