QUALIFIED financial institutions that register in or relocate offices to Qianhai will receive a maximum of 10 million yuan (US$1.45 million) each in subsidies, and those whose profits reached 2 billion yuan each in the previous year will receive a maximum of 20 million yuan, according to new measures supporting the quality development of Qianhai’s financial industry.

The skyline of Qianhai’s Guiwan area. Photos courtesy of Qianhai Authority

The 45 measures, unveiled by the Qianhai Authority on Monday and to remain valid for three years, are the third stimulus package the authority has rolled out to bolster the financial industry in seven months. They encourage the clustering of licensed financial institutions and the innovative development of characteristic financial businesses in Qianhai, support the innovative development of financial cooperation between Shenzhen and Hong Kong, advocate the construction of the Qianhai Shenzhen-Hong Kong International Financial Center and Qianhai Shenzhen-Hong Kong International Venture Capital Cluster, and target a benign financial ecology.

The new policy will give venture capital institutions a maximum of 3 million yuan in subsidies, based on 4% of their previous year’s management fee income generated from the fund registered in Qianhai under their management. In addition, settling-in allowances and annual talent housing subsidies will be provided to their employees.

A view of the Bao’an CBD area of the Greater Qianhai and Qianhai Bay.

Companies engaged in aircraft and special aviation equipment leasing will receive a reward of no more than 2.5% of their total contract rent each year in the first three years of the lease term. For vessels, offshore equipment and other businesses, a reward shall be given based on 1% of the actual amount of the leasing contract or the purchase contract of leased assets in the current year.

Liu Yu, general manager of Hang Seng Qianhai Fund Management, believed the new measures will help attract more financial institutions from Hong Kong and overseas to settle in Qianhai, which will further strengthen the cluster advantages of the area’s financial industry and enhance financial cooperation between Shenzhen and Hong Kong.

“As the measures are being implemented, it will be more convenient for us to carry out businesses and cooperate with various financial institutions to fully tap the growth potential of the domestic business, enhance Hang Seng’s brand value and business scale, and make greater contributions to the development of Qianhai’s financial industry,” Liu said.

So far, 268 financial institutions have signed agreements to settle in the Qianhai Shenzhen-Hong Kong International Financial Center. About 30% among them are Hong Kong and foreign-funded. As of the end of last year, 86 venture capital, private equity investment and international asset management institutions had settled in Qianhai, which are managing 752 funds with a total net asset worth 122.4 billion yuan.


(Source | Shenzhen Daily)