Tan Yifan

cicitan2011@gmail.com

SEVEN years ago, on the southwest bay of Shenzhen, a reclamation area that now covers 14.92 square meters was designated as a special zone for cooperation between Shenzhen and Hong Kong by lowering the threshold for Hong Kong professionals and institutions to conduct business on the mainland.

Qianhai, the testing ground that bears similar expectations to Shenzhen when it was established in 1979, now enjoys three kinds of policy advantages and is eager to take the lead in the Guangdong-Hong Kong-Macao Greater Bay Area strategy.

In 2010, the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone was established. Five years later, the Qianhai & Shekou Area of China (Guangdong) Pilot Free Trade Zone followed, increasing the total physical area of experimental land to 28.2 square meters. Earlier this year, the Qianhai and Shekou area was included in the greater bay area plan. As a special area designed to carry out bold institutional and industrial innovation and model feasible practices for the rest of China, Qianhai has been given unrivalled advantages and opportunities.

Financial hub

Qianhai aims to become another financial hub by following Hong Kong’s example. To become a whirlwind that attracts talents, capital and other resources, Qianhai has not only proposed to develop its financial industry but also wants to have the leading logistics, information, science, technology and business service industries.

As of the end of April, over 50,000 financial companies had registered in the Qianhai and Shekou area. The scale of business factoring and financial leasing companies ranked first and third in the country, respectively.

Under the CEPA Supplementary Agreement signed between the Chinese mainland and Hong Kong, Qianhai agreed to allow qualified joint venture securities companies to set up licensing securities companies there with Hong Kong funds. On June 30, China’s securities regulator approved the establishment of HSBC Qianhai Securities Ltd. and East Asia Qianhai Securities Ltd.

In August 2014, Qianhai started to allow Qualified Domestic Investment Enterprises to conduct offshore investment. Also in 2014, financial institutions and banks in Shenzhen and Hong Kong were allowed to issue cross-border renminbi syndicated loans.

Last week, the Qianhai Shenzhen-Hong Kong Fund Town unveiled its nameplate. The main construction of the fund town has been finished and it is ready to receive visitors. The fund town is located in the Guiwan area and will be the main base for its financial headquarters and institutions.

To create a business-friendly environment for Hong Kong enterprises, Qianhai allows certified Hong Kong tax agents, certified Hong Kong public accountants and Hong Kong lawyers and arbitrators to work there, and the Qianhai Cooperation Zone Court has hired Hong Kong professionals as people’s assessors or jurors for trials.

Main contributor

According to the latest data, a total of 4,564 Hong Kong companies have registered in Qianhai, with total registered capital of over 389.8 billion yuan (US$57.53 billion). By the end of the first quarter, Hong Kong companies in Qianhai achieved an added value of 863.7 billion yuan, comprising 22.4 percent of the total.

Besides their contributions, Hong Kong companies are also the main beneficiaries in the area. So far, 50 percent of the commercial land in Qianhai has been transferred to Hong Kong buyers. Thirty-four Hong Kong enterprises that were recognized as headquarters by the Qianhai Authority received 14.7 billion yuan in subsidies. Over 80 Hong Kong startups were incubated in the area and 1,442 job positions were offered to Hong Kong interns.