Hong Kong Film Sector Embraces New Trade Opportunities with Mainland

Hong Kong Film Sector Embraces New Trade Opportunities

Hong Kong's film industry has enthusiastically welcomed measures included in the updated Closer Economic Partnership Arrangement (Cepa) with mainland China. However, sector leaders advocate for clarity on operational details essential for maximizing these new trade opportunities.

Key Features of the Updated Cepa

• Expanded access to the mainland market for Hong Kong films.
• Relaxation of previous operational requirements for companies seeking preferential treatment.
• New arbitration options for Hong Kong-invested companies.

Tenky Tin Kai-man, a representative from the Federation of Hong Kong Filmmakers, expressed optimism about the updated measures but emphasized the necessity of addressing various details to ensure the effective implementation of these changes. Clarifying whether films entering the Chinese market are classified as Hong Kong films or as mainland productions is critical for tax implications and treatment under the enhanced agreement.

Industry Response and Future Directions

Crucindo Hung Cho-sing from the Federation of Motion Film Producers highlighted that these new measures align with the industry's demands, particularly relating to distribution rights for local films. He stressed the importance of having dedicated distributors in place for better promotional efforts and successful screenings in the mainland market.

Cepa, originally signed in 2003, continues to evolve, with updates aiming to strengthen Hong Kong's economic ties with the mainland. Finance Chief Paul Chan has pointed out that this arrangement facilitates Hong Kong's role as a key superconnector within China, enabling stronger economic cooperation and growth.