Hong Kong and the Chinese mainland signed on Tuesday a cooperation agreement on customs facilitation measures for wine entering the mainland market through Hong Kong.

Against the backdrop of growing demand for wine on the mainland, Hong Kong's zero wine duty policy and favorable business environment helped create room for wine traders in the territory to tap the mainland market, Hong Kong's Secretary for Commerce and Economic Development Rita Lau said at the signing ceremony.

She predicted that the signing of the agreement would enhance cooperation between the Hong Kong and mainland customs on wine- related matters, and fortify Hong Kong's position as a regional wine trading and distribution hub.

"The measures to be put in place will help enhance transparency and certainty in doing business, thus facilitating Hong Kong's wine traders who wish to expand their operations on the Mainland," Lau said.