The recent inking of an agreement pledging closer cooperation between accountants from Hong Kong SAR, Macau SAR and the coastal province of Guangdong closely follows the unveiling of plans to offer Hong Kong professional services providers a bigger foothold for operating in mainland China.
While few specific details have been revealed as to how the closer cooperation agreement would unfold, the broader scope indicates the pact should foster deeper cooperation between accountants in the fields of information, talent, business development and technology. Tech adoption, however, comes with a few challenges. As the world of business continues to rely increasingly on digital technology, the agreement states that accountants should be better versed in its use and intricacies.
According to Lin Keqing, executive deputy governor of Guangdong, the professional service sector in Hong Kong and Macau will be linked with that of Guangdong to provide high-quality professional services to support the economic development of the overarching Greater Bay Area. Lin described the cooperation agreement as a win-win for the accounting sector and a way to integrate the development of the Greater Bay Area with mainland China’s national development goals.
The cooperation agreement is a win-win for the accounting sector in all three jurisdictions
A sign of the travel-restricted times was senior officials from Hong Kong, Macau and Guangdong witnessing the signing ceremony via live-stream. Hong Kong finance chief Paul Chan, one of the virtual witnesses of the signing ceremony, said the accounting sector plays a crucial role in the region’s business development and urged Hong Kong accountants to seize the opportunities presented by the collaboration initiative.
Greater Bay ambition
The Greater Bay Area scheme is an ambitious plan to supercharge growth and innovation across nine cities in Guangdong plus the two Special Administrative Regions of Hong Kong and Macau. In September, authorities in mainland China announced that Hong Kong businesses will be allowed to use at least a third of new land being set aside as part of the Qianhai economic zone’s extensive expansion project in western Shenzhen, which borders Hong Kong.
Established in 2009 to foster service industry cooperation between Shenzhen and Hong Kong, Qianhai is currently home to about 11,500 Hong Kong-invested companies, accounting for more than 10% of registered enterprises that make tax contributions in the area. Under the plan, the Qianhai service industry zone will occupy an area of 120 square kilometres, more than eight times the original size.
Hong Kong accountants familiar with the expansion project believe it will offer a ‘wider stage’ for Hong Kong to grow its economy and create opportunities for young people in sectors such as professional services, finance and technology. The plan also includes the construction of a crossborder rail link connecting a proposed new town in the western part of Hong Kong's New Territories to Qianhai to help integrate both places.
Global hub
The Qianhai expansion and rail infrastructure plans chime with China's 14th five-year plan (2021–25) for national economic and social development and its long-range objectives. The outline of the latest economic blueprint pledged to continue supporting Hong Kong in raising its status as a global financial, transportation and trade centre.
The support includes the ongoing integration of Hong Kong into the Greater Bay Area. Meanwhile, established business and economic ties with the rest of the world will enable Hong Kong to consolidate its role as an international finance and business hub that acts as a bridge for international capital and businesses to enter China’s markets and for China's capital and business interests to effectively access the rest of the world.
With stakeholders keen to take advantage of the fresh opportunities, anticipation is high that travel restrictions – which have prevented almost all crossborder travel between Hong Kong and the mainland for more than a year – will be eased in the not too distant future.
