Hong Kong-based companies have access to 11 new industries after China's central government eased capital requirements.

China's Vice-Minister of Commerce Liao Xiaoqi met Hong Kong Chief Executive Donald Tsang and Financial Secretary Henry Tang to sign the accord at the city's government headquarters today.

"Chinese mainland will introduce 40 liberalization measures in 28 services areas," Tang said in a speech after the signing. Environmental services and utilities will be added to industries such as banking and tourism, he said.

The agreement, to take effect on Jan. 1, 2008, lets Hong Kong banks with at least US$6 billion in assets buy stakes in Chinese banks, compared with the previous US$10 billion minimum.

Hong Kong tour operators, hospitals and other businesses will be given wider access to China's markets, the agreement said.

The accord is aimed at strengthening economic ties with Chinese mainland. Chinese President Hu Jintao arrives in Hong Kong later today, his first visit as president, to mark the 10-year anniversary of the former British colony's handover to China. The city is run as a semi-autonomous region.

The process for Hong Kong buying into Chinese banks will also be simplified, Trade and Industry Chief Joseph Lai said at the briefing.

China's Ministry of Commerce signed the agreement, the fourth supplementary accord to the Closer Economic Partnership Agreement, or Cepa, today in Hong Kong.

The first agreement was signed in June, 2003.