Chief Executive Donald Tsang (center) witnesses the signing of Supplement VIII to CEPA by Financial Secretary John Tsang (2nd left) and Vice-Minister of Commerce Jiang Yaoping (2nd right) in Hong Kong on Tuesday. Edmond Tang / China Daily

The central government and Hong Kong signed a supplement on Tuesday, allowing Hong Kong medical service suppliers to set up wholly-owned hospitals in all municipalities and provincial capitals on the mainland.

The Supplement VIII to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), representing the eighth expansion since 2004, echoes the basket of measures brought by Vice-Premier Li Keqiang during his visit to Hong Kong in August, who announced that wholly Hong Kong-owned hospitals would be soon allowed to open in all municipalities and provincial capitals.

The pilot scheme was launched last year. Under Supplement VII to CEPA signed in May 2010, Hong Kong service providers were allowed to set up wholly-owned hospitals in Shanghai and Chongqing and provinces of Guangdong, Fujian and Hainan.

Service suppliers from the city were only allowed to set up hospitals in the form of joint-ventures under older supplements to CEPA.

Hong Kong Sanatorium & Hospital (HKSH), a general private hospital in the city, said they are glad to learn that the central government has paid a lot of attention to the development of the health services sector in Hong Kong.

HKSH has maintained close exchange of knowledge and technology with mainland hospitals and it will study whether an expansion plan on the mainland is feasible, the hospital said.

However, lawmaker Leung Ka-lau, representing the medical sector, said Hong Kong hospitals' advantages in technology and services do not necessarily grant them an edge in operations on the mainland market.

"We have not seen many successful examples (since the introduction of the Supplement VII to CEPA)," said Leung. "There are still obstacles in practice for Hong Kong service providers to set up a hospital of their own on the mainland, even though the provisions are ready."

litao@chinadailyhk.com

China Daily

(HK Edition 12/14/2011 page2)