The Dream Factory of China

　　2014 was a ‘breakthrough year’ for Qianhai. This rapidly developing “hot spot” achieved substantive breakthroughs with respect to Shenzhen-Hong Kong cooperation, financial innovation, new town construction, property development and institutional innovation.

　　1　　Implementation of corporate income tax incentives

　　In April 2014, Qianhai published an industry directory of tax incentives. Four major industries pay corporate income tax at a rate of 15%: logistics, information services, technology services and the cultural and creative industries. After the directory was published, the number of enterprises that settled in Qianhai grew exponentially. As of 30 April 2014, there were 6,470 enterprises that had set up business in Qianhai, and as of 30 December 2014, the number of enterprises in Qianhai surged to 19,990. It is particularly noteworthy that although the financial industry is not included in the incentives directory, numerous financial enterprises have been drawn to Qianhai due to its favorable financial climate. Currently, there are 11,333 financial enterprises in Qianhai, and they account for 56.7% of the total number of enterprises.

　　2　　Striving for numerous innovative financial policies

　　In 2014, Qianhai successfully obtained support in the form of 29 innovative financial policies from the People's Bank of China, the CBRC, CSRC and CIRC. Among them, 12 policies are national initiatives and regarded as the industry’s second launching of financial innovation. The polices include the following: People's Bank of China has agreed that a parent company located outside the territory or its holding subsidiaries may issue bonds in the territory and transfer those bonds out of the territory in RMB; CBRC has agreed to establish financial leasing companies and professionally-owned subsidiaries in Qianhai; CSRC has made an agreement with the Shenzhen Stock Exchange to set up a cross-border investment and financing platform for private equity products in Qianhai; and CIRC has agreed to develop Shenzhen-Hong Kong insurance. These innovative financial policies with strong operational viability can substantially facilitate profit-earning and directly attract additional innovative financial institutions to settle in Qianhai and swiftly develop their business.

　　3　　Rapidly developing cross-border loans

　　Cross-border RMB loans constitute the most important mission of Qianhai’s financial innovation. As of the end of December 2014, the filing amount of cross-border RMB loans reached up to RMB 67.7 billion, an amount that was the highest among different regions in China and surpassed ahead of schedule the RMB 50 billion filing target established by People's Bank of China at the beginning of the year. A number of entities with cross-border loan requirements were introduced, focusing on supporting new high-end industries such as supply-chain management companies, procurement platforms and financial leasing. The goal is to gather in Qianhai and strongly support construction of the Hong Kong-offshore RMB financial center.

　　4　　E-Hub opens

　　As China's first international youth innovation and entrepreneurship community, Qianhai Shenzhen-Hong Kong Youth and Innovation Hub opened on 7 December 2014. It will be built into an innovative cluster as an incubator-gathering platform, a comprehensive financial services platform, a law firm and a consultation platform. The aim is to sponsor the youth so that they can start innovative businesses and provide a growth ladder for Shenzhen’s and Hong Kong’s young people, especially those in the modern service industries.

　　Currently, there are 16 institutions specializing in innovative services at DreamWorks to open creative spaces and incubators. Half of them are innovative service companies from Hong Kong, such as HKUST Entrepreneurship Center and Internet Professional Association. The other half are Mainland institutions such as Huawei, China Telecom, Legend Star, DJI and Qianhai Houde Incubator.

　　5　　Number of Hong Kong enterprises exceeds 1,000

　　To attract more Hong Kong enterprises, Qianhai implemented a number of important measures in 2014, including cancelling the entry threshold of registered capital of RMB 5 million for Hong Kong enterprises, opening Hong Kong Enterprise in the Electronic One-stop Service Centre of Qianhai, and establishing Qianhai International Liaison Services Limited in Hong Kong.

　　These various policies and measures have yielded favorable results. According to the latest figures, there are more than 1,000 Hong Kong enterprises have registered in Qianhai, achieving the goal set at the beginning of the year. The number of Hong Kong enterprises increased by 778 from January 2014 to November 2014- nearly 20 times higher than the growth rate in early 2013. In addition, the relationship between Qianhai and Hong Kong is becoming closer than ever before. In 2014, Qianhai received a total of more than 10,000 Hong Kong visitors and over 4,000 Hong Kong enterprises, both figures being 10 times greater than the same period in 2013.

　　6　　Cross-border e-commerce pilot schemes kicks off

　　In the face of rapidly growing cross-border e-commerce trade in the world, Qianhai has promoted cross-border e-commerce as a key strategic and cornerstone industry. Since 2014, the Qianhai Free Trade Port Zone has launched cross-border e-commerce import and export pilot schemes and debuted the nation’s first full processing of cross-border e-commerce refunds. As a result, Qianhai enjoys integrated support functions and possesses a sound foundation for creating a cross-border e-commerce industry that comprehensively integrates product flow, logistics, information flow and capital flow.

　　7　　The first Shenzhen-Hong Kong joint venture law firm

　　China Commercial Lam Lee Lai (Qianhai) Law Firm, the nation’s first joint-venture law firm between the Mainland and Hong Kong, was established in Qianhai at the end of 2014. The move represents a significant step in legal cooperation involving Guangdong province, Hong Kong and Macau.

　　The law firm is authorized to directly offer cross-border legal services to Chinese enterprises that wish to “Go Out” as well as to foreign enterprises that wish to invest in China. The firm will also provide related legal environment research reports and legal services for the 21st Century Maritime Silk Road initiative.

　　8　　Qianhai SIM card

　　At the end of 2014, seven service providers from Shenzhen and Hong Kong officially launched their Qianhai SIM card, offering a rate similar to that of the two cities for calls between Qianhai and Hong Kong. Under the arrangement, those calling Hong Kong and overseas are charged Hong Kong rates, while those calling Shenzhen and the Mainland are charged Mainland rates.

　　Building on the foundation of the Qianhai SIM card, Qianhai will launch a private channel for international communication. Accordingly, Qianhai will satisfy the international data service requirements of most industries with its ability to share real-time information with international financial centers such as New York, London and Hong Kong.

　　9　　Talent introduction

　　In 2014, Qianhai for the first time organized four expert committees specializing in finance, legal institutions, planning and construction, and youth affairs. Hong Kong members comprise more than one-third of the seats in all four committees, and their ranks include many high-profile professionals from different sectors. They serve as a reliable think tank for Qianhai’s development.

　　Furthermore, Qianhai has been actively expanding the range of employment opportunities for Hong Kong professionals. In June 2014, 18 Hong Kong certified tax agents passed the Qianhai occupational qualification test, achieving the first step towards working across the Shenzhen-Hong Kong border. It marked a milestone of Hong Kong professionals making career inroads in Shenzhen Qianhai.

　　10　　Enterprise Residence (Dream Park) opens

　　Since Qianhai Vanke Enterprise Residence opened at the end of 2014, Qianhai has steadily received more inhabitants. As Qianhai’s first substantial office area for enterprises, all 50 blocks of working and service residences of varying sizes have been quickly filled by all kinds of ‘three-L’ (luxurious, large and high-level) companies. The chic and modern residence possesses a comprehensive range of facilities, including conference rooms, banquet halls, cafeterias, exhibition halls, tea houses, coffee shops, gyms and gardens. The area is a genuine Qianhai attraction.

　　11　　Commencement of 20 important projects

　　On 7 December 2014, Qianhai commenced 20 important projects. The total investment came to RMB 103.5 billion, including permanent construction projects such as the Qianhai Legal Tower, China Merchants Group Qianhai Free Trade Center, CIMC International Maritime Business Center, SF Headquarters and Qianhai International Financial Center, which was developed by Silverstein Properties, Inc. The completion of these projects is essential to accelerating Qianhai’s establishment and development as a world-class business environment with a concentration of high-quality industries, talents and resources.

　　12　　The Chinese Gold and Silver Exchange Society joins Qianhai

　　At the end of 2014, The Chinese Gold and Silver Exchange Society (CGSES) set up business in Qianhai, bringing in its first wave 68 enterprise members. With more than 100 years of history, the society is the only bullion trading platform authorized by the Hong Kong government. Drawing upon Hong Kong’s advantages in international reputation and professionalism, the society will set up and develop a CGSES Precious Metals Logistics Assay Centre in Qianhai. It is reported that the center will also be Qianhai’s first agglomeration base of Hong Kong enterprises. It will play a leading role in encouraging Hong Kong enterprises, especially SMEs, to join in developing Qianhai.