The Dream Factory of China

Qianhai, a special zone within the Shenzhen Special Economic Zone, is believed to be a “Manhattan of the East”

and a new economic growth pole of the future. It has become a connective bond between the mainland and

Hong Kong, deepening collaborations in fi nance, law, logistics, science and technology, information service and

talents. It is also an experiment to study the development and innovation of China’s fi nance, legislation, modern

service industries and effective government, which can produce replicable practices for the rest of the country.

‘Manhattan of the East’in the making

Qianhai, a special zone within the Shenzhen Special Economic Zone, is believed to be a “Manhattan of the East” and a new economic growth pole of the future. It has become a connective bond between the mainland and Hong Kong, deepening collaborations in finance, law, logistics, science and technology, information service and talents. It is also an experiment to study the development and innovation of China’s finance, legislation, modern service industries and effective government, which can produce replicable practices for the rest of the country.

Qianhai is designed to be an ideal place for innovation, entrepreneurship and living. It has lowered thresholds for overseas investors and provided many incentives such as tax reduction, favorable visa polices and project incubators to attract talents.

Qianhai Basics

The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, covering an area of 15 square kilometers, is located on the Nanshan Peninsula and neighbors Hong Kong and Macao. The zone focuses on the development of finance, modern logistics, information service, science and technology, and other professional service industries, among which finance is the most prominent. The zone has been approved to explore innovation in financial reform and serve as an exhibition of China’s opening financial industry. In specific, the cooperation zone is permitted to explore the expansion of backflow channels for overseas RMB funds, grants of cross-border RMB loans, and Qianhai-based firms’ issuance of RMB bonds in Hong Kong, and to set up Qianhai equity investment funds. By 2020, the GDP of the cooperation zone will reach 150 billion yuan (US$23.8 billion).

On April 27, 2015, the China (Guangdong) Pilot Free Trade Zone Qianhai & Shekou Area of Shenzhen was initiated. As a crucial part of the Guangdong Pilot Free Trade Zone, the Qianhai & Shekou area is a key aspect of the economic cooperation between Shenzhen and Hong Kong, which covers an estimated area of 28.2 square kilometers. The efforts will focus on the development of the legal system, administrative services, cooperation between Shenzhen, Hong Kong and Macao, financial opening up and innovation, integrated function of global commerce and reformative innovation of shipping logistics to build Shenzhen into a pivot-point of the Maritime Silk Road, and a new paradigm of the free trade zone, as the Shenzhen-Hong Kong integrated harbor.

Advantages of Qianhai

Qianhai is close to both Shenzhen and Hong Kong airports and has formed a convenient transportation network that connects the Pearl River Delta, Hong Kong and Macao with the Hong Kong-Shenzhen West High-speed Railway, Guangzhou-Dongguan-Shenzhen Intercity Railway, Shenzhen Metro Lines 1, 5 and 11, Guangzhou-Shenzhen Riverside Expressway, Nanping Expressway Phase II, Binhai Boulevard, and other railway and expressway networks.

Qianhai now enjoys superimposed policy assets as the preferential policies of the cooperation zone, the free trade zone and the Qianhai Bay Bonded Port Area are applicable in the area. Those policies will simplify administrative procedures, offer tax deductions to tax payers and allow industries, especially the financial industry, to be increasingly open to foreign investors.

Qianhai will help build a pivotal international port including Shekou Port, Chiwan Port and Qianhai Bay Bonded Port Area. The development of Qianhai’s finance, trade and shipping services will bring vitality to Shekou while the matured industries and public infrastructure in Shekou will support Qianhai’s development.

Qianhai also has advantages that promote Shenzhen-Hong Kong cooperation. Geographically, Qianhai is close to world-class ports and airports – from January to June this year, Hong Kong port container throughput was 9.16 million TEUs and in the first half year, the container throughput of Shenzhen Western Port Area was half of the city’s total last year. By the end of June, Hong Kong International Airport had served 35.2 million passengers and Shenzhen International Airport served 20.35 million passengers. In addition to these resources, Qianhai has expanded cooperation with Hong Kong in finance, logistics, information, science and technology, culture, law, infrastructure construction and talent.