Page 344 - 2017 White Paper
P. 344
7 White Paper on the Business Environment in China
· Although imports faced a 10.8 percent decrease become China’s first “e-commerce model city”. In addition
in 2015, Guangdong realized an import value of 2357.7 to streamlining registration processes for e-commerce
billion yuan. companies, the city has made other efforts to promote
the development of e-commerce. One example is the
· Guangdong province was still ranked top for building of dedicated industrial parks, such as Futian
both export and import values nation-wide. International E-commerce Industrial Park, which opened in
2009 and houses more than 150 internet and e-commerce
In particular, trade between Guangdong and newly companies.
emerging markets, including Latin America, the Middle
East and Africa, has increased greatly in recent years. One state-level project being developed in Shenzhen
is the Qianhai Shenzhen-Hong Kong Modern Services
Spotlight on Shenzhen Government Cooperation Zone, approved by the State Council in June
Innovation 2012. By the end of 2015, a total of 61,452 companies with
a combined registered capital of 3252 billion yuan had
Shenzhen’s government has taken the lead on a already registered in the zone. A joint venture between
number of new initiatives to become the national Hong Kong and Mainland China, and supported by
leader in innovation and private enterprise growth. The the State Council, the Qianhai Zone is designed as an
city has experienced rapid private economic growth, experimental business zone for better interaction between
spawning about 795,969 private companies, including the two jurisdictions’ financial, logistics, and IT services
international giants such as Huawei Technologies Co. sectors. It covers slightly less than 20 square kilometers on
Ltd., Tencent Holdings Ltd., China Vanke Co. Ltd., and the western side of Shenzhen, and is expected to achieve
BYD. Available incentives include a recent VAT exemption a GDP of 150 billion yuan by 2020.
policy and a 50 percent CIT exemption for qualified small
and micro-sized enterprises. The government has also Among its many goals, the Qianhai Zone will serve as a
adopted specific measures in terms of equity investment pilot area for the liberalization of China’s financial sector as
incentives, e-commerce promotion, and the introduction a whole, including preferential policies such as:
of electric vehicles. Lastly, as part of a pilot program
to curb emissions of key pollutants and clean up the · Allowing the Qianhai Zone to explore the
environment, foreign investors are now permitted to expansion of offshore RMB flow-back channels, and
trade carbon permits in Shenzhen. establish an innovative experimental zone for cross-
border RMB transactions;
Equity Investment Incentives
· Supporting the granting of RMB loans for
Private equity (PE) investment has emerged as one offshore projects by banking institutions established in
of the most important capital-raising avenues for small Qianhai;
and medium-sized enterprises. Recognizing this, the
Shenzhen government has become one of several · Under the CEPA framework , conduc ting
coastal city administrations to offer further incentives to studies on the granting of RMB loans by Hong Kong-
equity investment enterprises. The city has established based banking institutions for enterprises and projects
a PE Development Fund (PEDF) and clarified operation established in Qianhai;
procedures for PE funds that intend to apply for financial
support from the PEDF. Incentives offered to PE funds · Supporting qualified enterprises and financial
include: rewards for local financial contributions, office institutions registered in Qianhai to issue RMB bonds
purchase and rental subsidies, one-time settlement in Hong Kong within the quotas approved by the State
rewards, and one-time rewards for investment Council to support the development of Qianhai;
withdrawal.
· Supporting the innovative development of
E-Commerce Promotion foreign-invested equity investment funds, and actively
exploring new modes of foreign exchange settlements
In September 2009, Shenzhen was approved by of capital funds, investments and fund management;
China’s NDRC and Ministry of Commerce (MOFCOM) to and
· Supporting the establishment of international
or national management headquarters or business
operation headquarters by Hong Kong and other
onshore and offshore financial institutions.
344
· Although imports faced a 10.8 percent decrease become China’s first “e-commerce model city”. In addition
in 2015, Guangdong realized an import value of 2357.7 to streamlining registration processes for e-commerce
billion yuan. companies, the city has made other efforts to promote
the development of e-commerce. One example is the
· Guangdong province was still ranked top for building of dedicated industrial parks, such as Futian
both export and import values nation-wide. International E-commerce Industrial Park, which opened in
2009 and houses more than 150 internet and e-commerce
In particular, trade between Guangdong and newly companies.
emerging markets, including Latin America, the Middle
East and Africa, has increased greatly in recent years. One state-level project being developed in Shenzhen
is the Qianhai Shenzhen-Hong Kong Modern Services
Spotlight on Shenzhen Government Cooperation Zone, approved by the State Council in June
Innovation 2012. By the end of 2015, a total of 61,452 companies with
a combined registered capital of 3252 billion yuan had
Shenzhen’s government has taken the lead on a already registered in the zone. A joint venture between
number of new initiatives to become the national Hong Kong and Mainland China, and supported by
leader in innovation and private enterprise growth. The the State Council, the Qianhai Zone is designed as an
city has experienced rapid private economic growth, experimental business zone for better interaction between
spawning about 795,969 private companies, including the two jurisdictions’ financial, logistics, and IT services
international giants such as Huawei Technologies Co. sectors. It covers slightly less than 20 square kilometers on
Ltd., Tencent Holdings Ltd., China Vanke Co. Ltd., and the western side of Shenzhen, and is expected to achieve
BYD. Available incentives include a recent VAT exemption a GDP of 150 billion yuan by 2020.
policy and a 50 percent CIT exemption for qualified small
and micro-sized enterprises. The government has also Among its many goals, the Qianhai Zone will serve as a
adopted specific measures in terms of equity investment pilot area for the liberalization of China’s financial sector as
incentives, e-commerce promotion, and the introduction a whole, including preferential policies such as:
of electric vehicles. Lastly, as part of a pilot program
to curb emissions of key pollutants and clean up the · Allowing the Qianhai Zone to explore the
environment, foreign investors are now permitted to expansion of offshore RMB flow-back channels, and
trade carbon permits in Shenzhen. establish an innovative experimental zone for cross-
border RMB transactions;
Equity Investment Incentives
· Supporting the granting of RMB loans for
Private equity (PE) investment has emerged as one offshore projects by banking institutions established in
of the most important capital-raising avenues for small Qianhai;
and medium-sized enterprises. Recognizing this, the
Shenzhen government has become one of several · Under the CEPA framework , conduc ting
coastal city administrations to offer further incentives to studies on the granting of RMB loans by Hong Kong-
equity investment enterprises. The city has established based banking institutions for enterprises and projects
a PE Development Fund (PEDF) and clarified operation established in Qianhai;
procedures for PE funds that intend to apply for financial
support from the PEDF. Incentives offered to PE funds · Supporting qualified enterprises and financial
include: rewards for local financial contributions, office institutions registered in Qianhai to issue RMB bonds
purchase and rental subsidies, one-time settlement in Hong Kong within the quotas approved by the State
rewards, and one-time rewards for investment Council to support the development of Qianhai;
withdrawal.
· Supporting the innovative development of
E-Commerce Promotion foreign-invested equity investment funds, and actively
exploring new modes of foreign exchange settlements
In September 2009, Shenzhen was approved by of capital funds, investments and fund management;
China’s NDRC and Ministry of Commerce (MOFCOM) to and
· Supporting the establishment of international
or national management headquarters or business
operation headquarters by Hong Kong and other
onshore and offshore financial institutions.
344
