In early March I visited Guangdong with colleagues from the Development Bureau to learn more about the latest planning and development issues in the province. We also visited Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Qianhai) and the historic buildings in Shamian. During the trip, we discussed with the Department of Housing and Urban-Rural Development of Guangdong Province the implementation of Guangdong’s early and pilot schemes under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). We also met with Hong Kong construction industry professionals working in Guangdong to learn about their working conditions.
Since 2003, Hong Kong and the Mainland have been co-signatories to CEPA and its nine supplementary agreements. In general, there are three phases for construction industry professionals to develop their career on the Mainland: obtaining professional qualifications, registration to practise and setting up professional firms. Obtaining professional qualifications can be achieved through the mutual recognition of professional institutions in Hong Kong and the Mainland, or by taking examinations. Starting in 2003, among the six construction-related professions of estate surveyor, architect, structural engineer, planner, quantity surveyor and building surveyor, around 1,500 professionals in Hong Kong and Mainland respectively have obtained professional qualifications from the other side. Some of the mutual recognition arrangements have expired and we are now actively negotiating with the Mainland to renew the agreements so that more construction industry professionals can obtain mutual recognition of their qualifications. However, in order to apply for registration to practise, those Hong Kong professionals who have obtained the Mainland professional qualifications have to be employed by firms with relevant enterprise qualifications on the Mainland (and vice versa for Mainland professionals). Regarding applications for setting up firms, enterprise qualification requirements must be fulfilled. For example, among partners putting up capital to establish an architectural design firm, at least three of them must have the required professional qualifications and experience. In the past Hong Kong professionals did not enjoy the same treatment as Mainland professionals with the same qualifications, and were not able to partner with one another to set up firms in Mainland to start their business, even if they had obtained the Mainland professional qualifications via mutual recognition arrangements.
Since 2008, Guangdong Province has been launching early and pilot schemes progressively so that those Hong Kong professionals who have obtained professional qualifications on the Mainland can start to register in Guangdong with more favourable treatment. For example, applicants need not be subject to restrictions as to whether they are registered practitioners in Hong Kong or not. Furthermore, in mid 2012, those professionals who had obtained mutual recognition of qualifications became entitled to the same treatment as Mainland professionals. For instance, when setting up an architectural design firm as mentioned above, the partners with the required professional qualifications could be from the Mainland or Hong Kong. However, to date very few Hong Kong professionals have set up firms in the Mainland under the scheme.
In mid 2012, the State Council announced its approval of the Supporting Policies of the Development and Opening up of Qianhai (the State Council’s approval), which has opened up greater opportunities for Hong Kong professionals to develop their business on the Mainland. Three points are worthy of special attention in the approval: (1) supporting Qianhai to implement early and pilot schemes which are more special than those enjoyed by Special Economic Regions; (2) allowing those Hong Kong professionals who possess qualifications to practise in Hong Kong to provide professional services to enterprises and residents in Qianhai directly; and (3) the systems and the mechanisms of Qianhai can be more innovative.
Given this opportunity for Hong Kong professionals to develop in the Mainland we have spared no effort and promptly started working actively in this respect. We have organised brainstorming sessions with Hong Kong professionals to learn more about their thoughts on participating in the development of Qianhai. We have also kept in close contact with the Qianhai Authority to discuss how Hong Kong professionals can participate in the development of Qianhai. Furthermore, we are exploring with them on ways of incorporating Hong Kong’s construction industry experience and management models into Qianhai, so that we can bring business opportunities to the industry and at the same time facilitate the development of modern international services in Qianhai. We hope that the success of co-operation in the construction field between Qianhai and Hong Kong will radiate outwards and that such co-operative arrangements can be adopted by other Mainland cities, leading to the further development of Hong Kong’s construction industry stakeholders on the Mainland.
We are now discussing with the Qianhai Authority ways to facilitate Hong Kong professionals providing high-end professional services in Qianhai. The key directions to be explored include: (1) allowing professionals with qualifications to practise in Hong Kong to register in Qianhai in a direct and simplified way; (2) lowering entry thresholds and simplifying approval procedures to assist Hong Kong professionals in setting up firms in Qianhai; (3) adopting the engineering standards, inspection mechanisms and management systems of Hong Kong in the context of innovation systems and mechanisms; (4) establishing an information-sharing mechanism and linking up the official websites of both sides to help Hong Kong industries to stay in touch with the development of Qianhai; (5) establishing talent exchange programmes to enhance the exchange and training of new talents.
Infrastructural works in Qianhai have just commenced. After the 18th Working Meeting of the Hong Kong/Guangdong Co-operation Joint Conference held in Guangzhou in mid-March, the Hong Kong Government has taken follow-up actions with a view to pursuing early implementation of measures in Qianhai to recognize the qualifications of Hong Kong professionals and enterprises and allow them to register and practise so that they can provide consultancy, planning and design services, and bid for construction projects there. We have drafted the framework co-operation agreement with the Qianhai Authority based on the five exploration directions mentioned above. We hope that the approval procedures can be completed and the agreement be signed soon so that we can further explore ways of implementing the measures.
When I visited Shanghai and Guangzhou, I met with Hong Kong construction industry professionals working there and learnt that some Hong Kong professional institutions have not set up offices to support their members in major Mainland cities. After returning we contacted the associated institutions to get more information about their situations and to provide assistance if possible. Institutions may collaborate among themselves and set up joint offices in major cities on the Mainland to organise gatherings and activities, facilitate exchange and the sharing of information, and provide mutual support among Hong Kong professionals. We will also provide active assistance to facilitate the development of the construction industry and associated professionals on the Mainland.
7 April, 2013
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