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China is currently in talks with Hong Kong with the aim of signing a new agreement under the Closer Economic Partnership Arrangement (CEPA) before July 1, vice commerce minister Liao Xiaoqi said.

Liao said in an online interview carried on the central government website, that the latest supplementary deal is aimed at further boosting economic ties between the mainland and Hong Kong, which will mark the 10th year of handover to China this July 1.

"(Hong Kong and Chinese mainland) have already realized bilateral free trade in goods with zero tariffs, while the future deepening of cooperation will mainly be focused on the service trade sector," Liao said.

The mainland will open further its service industries to Hong Kong and will take more measures to facilitate trade and investment between the two sides, he said.

China and Hong Kong signed the original CEPA agreement in 2003 and inked three supplementary deals in the following three years.