"To apply for a business license is already much easier now for foreign companies," he said. "There is not much CEPA can do to open the market, maybe except in the software development business."

Joe Lou, vice chairman of the Hong Kong Mainland Software Industry Cooperation Association (HMSiCA) agreed. As software development is a R&D-based business, CEPA III should help to clarify taxation and legislation issues in China.

"CEPA III should focus on positioning Hong Kong as the outsourcing and software center," said Lou.