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6 White Paper on the Business Environment in China
registered capital of RMB 1372 billion had already registered in centives that are likely to be extended to the other areas in Guang-
the zone. A joint venture between Hong Kong and Mainland dong Province in the near future. This is designed to extract the
China, and supported by the State Council, the Qianhai Zone ‘next wave’ of FDI in areas such as Hengqing Island near Zhuhai
is designed as an experimental business zone for better interac- and Nansha Port near Guangzhou, and if successful may eventu-
tion between the two jurisdictions’ financial, logistics, and IT ally be instituted nationwide.
services sectors. It covers slightly less than 20 square kilometers
on the western side of Shenzhen, and is expected to achieve a
GDP of RMB150 billion by 2020.
Among its many goals, the Qianhai Zone will serve as a pilot
area for the liberalization of China’s financial sector as a whole,
including preferential policies such as:
• Allowing the Qianhai Zone to explore the expansion
of offshore RMB flow-back channels, and establish an
innovative experimental zone for cross-border RMB
transactions;
• Supporting the granting of RMB loans for offshore
projects by banking institutions established in Qianhai;
• Under the CEPA framework, conducting studies on
the granting of RMB loans by Hong Kong-based bank-
ing institutions for enterprises and projects established
in Qianhai;
• Supporting qualified enterprises and financial insti-
tutions registered in Qianhai to issue RMB bonds in
Hong Kong within the quotas approved by the State
Council to support the development of Qianhai;
• Supporting the innovative development of foreign-in-
vested equity investment funds, and actively exploring
new modes of foreign exchange settlements of capital
funds, investments and fund management; and
• Supporting the establishment of international or na-
tional management headquarters or business operation
headquarters by Hong Kong and other onshore and
offshore financial institutions.
Qualifying enterprises will be entitled to a reduced corpo-
rate income tax rate of 15 percent, and to increase investor con-
fidence in the area, the government has stated plans to explore
the establishment of branches of Hong Kong arbitration insti-
tutions in Qianhai. To attract foreign talent, especially financial
sector employees from Hong Kong, the zone offers a special 15
percent salary tax rate for foreign nationals living or working in
Qianhai. In April 2013 the municipal government announced
four industries–finance, modern logistics, information services,
and related industries operating within the zone–that are eligi-
ble for special funding.
Identified as “an area for spearheading industrial restructuring
in the Pearl River Delta region,” the Qianhai Zone provides in-
258
registered capital of RMB 1372 billion had already registered in centives that are likely to be extended to the other areas in Guang-
the zone. A joint venture between Hong Kong and Mainland dong Province in the near future. This is designed to extract the
China, and supported by the State Council, the Qianhai Zone ‘next wave’ of FDI in areas such as Hengqing Island near Zhuhai
is designed as an experimental business zone for better interac- and Nansha Port near Guangzhou, and if successful may eventu-
tion between the two jurisdictions’ financial, logistics, and IT ally be instituted nationwide.
services sectors. It covers slightly less than 20 square kilometers
on the western side of Shenzhen, and is expected to achieve a
GDP of RMB150 billion by 2020.
Among its many goals, the Qianhai Zone will serve as a pilot
area for the liberalization of China’s financial sector as a whole,
including preferential policies such as:
• Allowing the Qianhai Zone to explore the expansion
of offshore RMB flow-back channels, and establish an
innovative experimental zone for cross-border RMB
transactions;
• Supporting the granting of RMB loans for offshore
projects by banking institutions established in Qianhai;
• Under the CEPA framework, conducting studies on
the granting of RMB loans by Hong Kong-based bank-
ing institutions for enterprises and projects established
in Qianhai;
• Supporting qualified enterprises and financial insti-
tutions registered in Qianhai to issue RMB bonds in
Hong Kong within the quotas approved by the State
Council to support the development of Qianhai;
• Supporting the innovative development of foreign-in-
vested equity investment funds, and actively exploring
new modes of foreign exchange settlements of capital
funds, investments and fund management; and
• Supporting the establishment of international or na-
tional management headquarters or business operation
headquarters by Hong Kong and other onshore and
offshore financial institutions.
Qualifying enterprises will be entitled to a reduced corpo-
rate income tax rate of 15 percent, and to increase investor con-
fidence in the area, the government has stated plans to explore
the establishment of branches of Hong Kong arbitration insti-
tutions in Qianhai. To attract foreign talent, especially financial
sector employees from Hong Kong, the zone offers a special 15
percent salary tax rate for foreign nationals living or working in
Qianhai. In April 2013 the municipal government announced
four industries–finance, modern logistics, information services,
and related industries operating within the zone–that are eligi-
ble for special funding.
Identified as “an area for spearheading industrial restructuring
in the Pearl River Delta region,” the Qianhai Zone provides in-
258
