The Chinese government and the Hong Kong Special Administrative Region (HKSAR) signed Tuesday Supplement V to the Closer Economic Partnership Arrangement (CEPA) in Hong Kong, according to a statement released by China's Ministry of Commerce on its website.

The supplement, a fifth supplementary accord to CEPA, is aiming to further open the mainland market to Hong Kong, especially in the fields of tertiary sector, trade and investment, and mutual recognition of professional certificates. CEPA has been expanded each year since it was signed in 2003.

Under the new arrangement, the mainland will introduce 29 liberalization measures in 17 service areas, including two mining-related services sectors to Hong Kong business, expanding the total number of services sectors covered by CEPA and its supplements to 40, said the statement.

Guangdong province is stipulated in the supplement to be the approval authorities for Hong Kong investment. For instance, the Hong Kong tourist agencies can directly pledge for go-ahead from the Guangdong government without asking the central government's permission if they want to set up joint ventures or wholly-owned subsidiaries in the province. And this reform is believed to be the highlight and breakthrough in the supplement.

The new supplementary accord will take effect on Jan. 1 next year, the ministry added.