HK, Macao grain traders encouraged on mainland

BEIJING - China's Ministry of Commerce said Thursday it has allowed trial operation of wholly Hong Kong-owned and Macao-owned grain traders in south China's Guangdong province.

The move is aimed at boosting economic ties between Hong Kong and Macao and the Chinese mainland and encouraging businesses from the two regions to set up merchandizing enterprises on the mainland, according to a statement issued by the ministry.

A Hong Kong or Macao trader that has more than 30 outlets on the mainland and sells grain products of various types and brands from multiple suppliers can run as a solely-funded business in Guangdong, instead of being restricted by the 49-percent ceiling for overseas investment ratio in a mainland grain trader, the statement said.

The mainland signed Closer Economic Partnership Arrangements with Hong Kong and Macao in 2003 to promote economic cooperation with the two special administrative regions.

Actual use of Hong Kong investment on the mainland rose 16.4 percent year-on-year to $70.5 billion in 2011, while that of Macao investment climbed 3.8 percent year-on-year to $680 million, official data showed.