| Abstract | The article discusses the two steps China has recently taken forward in liberalising its services sectors: improving its WTO offers on services and designating Shenzhen as the second pilot city for foreign banks to conduct limited local currency business. Hong Kong's financial institutions are among the first to expand their operations in Mainland, they will benefit from the opening up of yuan business for foreign banks in Shenzhen. Although the extent of liberalisation varies from industry to industry, each carries significance to the still rather short history of services liberalisation in China. Hong Kong companies should thus position themselves to take advantage of the business opportunities provided by this huge, growing and liberalising services sector in the Chinese Mainland. All in all, the second wave of Hong Kong's investment into the Mainland may well be in the services sector, after the massive investment in manufacturing in the 1980s. |
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