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| CTT clothing shop in Xian. |
It's not necessary for a business to be developed or large to take
advantage of the Closer Economic Partnership (CEPA) between Hong Kong
and the Chinese mainland.
Take the case of Mr Yeung, the first Hong Kong resident to obtain his
individually owned business licence in Xian in May 2005. Yeung went
to the office of the administration of industry and commerce on Chang'an
Road South with all the necessary documents to apply for his business
licence in Xian. There, the head of the office personally accompanied
him in going through the formalities.
At first Yeung thought that it was going to take quite some time. But
to his surprise, he obtained his licence shortly after paying the necessary
fees and submitting the required documents.
Yeung opened his CTT clothing shop on Normal University Road in the
southern suburbs of Xian. He chose Xian as his foothold because it commands
a dominant position in western China and has plenty of opportunities
to offer. As a growing consumer market, there is tremendous potential
for young shoppers.
The business mainly concentrates on CTT sports and casual wear produced
in Fujian. The brand is endorsed by the China Table Tennis Association,
which is trying to open up the domestic market and encourage the sport,
as well as raise money.
The monthly rental for Yeung's 80 sqm shop is Rmb110 (HK$103.7), lower
than that of other street-level shops in major commercial districts
in Xian.
The shop sells two major categories of goods. The first category is
CTT sports and casual wear for men and women, with single pieces (tops,
T-shirts and sports pants) priced at between Rmb70 and Rmb100 (HK$66
and HK$94.3), with sets selling at between Rmb150 to Rmb200 (HK$141
and HK$188.6).
The second category on sale in the shop is sports and casual shoes
(featuring the Tebu brand), with prices ranging from Rmb100 to Rmb400
(HK$94.3 to HK$377.3). Yeung hopes to capitalise on the ping pong craze
among young people on the mainland.
For this reason, he has opened his shop in the southern suburbs of
Xian, where many universities and colleges are located.
Business is steadily expanding and Yeung says he plans to find out
more about growing the trade into other second-tier cities in Shaanxi.
According to State Administration for Industry and Commerce regulations,
people from Hong Kong and Macau are allowed to set up individually owned
businesses on the mainland in accordance with relevant laws and regulations
without having to go through foreign investment approval procedures,
effective from 1st January 2005.
On the other hand, CEPA II has lifted the geographical restrictions
and enlarged the business scope for Hong Kong permanent residents setting
up individually owned businesses on the mainland. Hong Kong people are
now allowed to engage in service trades that also include catering,
hairdressing and repairs as well as all forms of retail.
from Zhou Peng, Xian Office
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