The Dream Factory of China

Over the past six years, Qianhai has been exploring innovation in various fields. In particular, an array of financial innovation policies were tailored in the area, establishing models for China as a whole. Major attempts to develop financial industries in Qianhai are listed below.

1. Breakthrough of joint venture

securities projects

Under the CEPA Supplementary Agreement signed between Chinese mainland and Hong Kong, Qianhai agreed to allow qualified joint venture securities companies with Hong Kong funds to set up one licensing securities company in Qianhai with the Shenzhen Municipal Government’s approval Feb. 21, 2013. The Hong Kong stakeholders can hold up to 51 percent of the stocks.

2. Trial spot of QDIE

In August 2014, the State General Administration of Exchange Control approved the establishment of a trial area of QDIE (Qualified Domestic Investment Enterprise) in Qianhai with an offshore investment quota of US$1 billion. The government issued a detailed regulation regarding the QDIE before the end of 2014.

3. First cross-boarder RMB bank group loan

On Dec. 22, 2014, financial institutions and banks from Shenzhen and Hong Kong jointly inked deals for a cross-border syndicated loan. The banks and institutions completed their first loan withdrawals March 30 and May 5 the next year. It was the first cross-boarder RMB syndicated loan in Qianhai.

4. Macroeconomic prudent management system for foreign loans

On March 9, 2015, the State General Administration of Exchange Control Shenzhen Office, together with Qianhai authority, released detailed regulations for Qianhai’s macroeconomic prudent management system for foreign loans.

5. Mobile small loan product

The WeBank in Qianhai, owned by Tencent, is the first private bank founded in China and it’s also a private bank that only operates online. Targeting mobile users, the WeBank launched a small loan product May 15, 2015.

6. Qianhai REITs

The China Securities Regulatory Commission officially approved a security investment fund initiated by Penghua Funds and Vanke on June 8, 2015. Named Qianhai REITs, it is China’s first Real Estate Investment Trust product that follows international practices.

7. QCFI

Qianhai Cross-border Finance Index (QCFI) is a finance index that was compiled and released jointly by Qianhai Institute for Innovative Research and the University of Hong Kong on Dec. 3, 2015.

8. Reinsurance company

The Qianhai Financial Holding joined hands with another six shareholders to initiate a reinsurance company in Qianhai after gaining the approval of the China Insurance Regulatory Commission on March 25, 2016.

9. Safer surveillance system

In a bid to provide a safer environment for Internet finance, the Qianhai Shekou FTZ management commission has been working with several municipal departments involved in market and public security to provide big-data-based surveillance systems.

10. Private equity regulatory mode

The Shenzhen Securities Regulatory Bureau and Qianhai authorities signed a memorandum on the cooperation in regulating private equities Aug. 8, 2016, aiming to pilot a new mode of supervision of privately raised investment in Qianhai, which could ultimately be promoted to the rest of the country.