A view of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. (PHOTO PROVIDED TO CHINA DAILY)
Hong Kong’s Financial Services and the Treasury Bureau and the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone authority today jointly released 18 measures supporting venture capital investment cooperation.
The policies aim to support the linked development of Shenzhen and Hong Kong venture capital investments, promote Shenzhen-Hong Kong cooperation on innovation and technology, and leverage finance to foster the development of an international innovation and technology hub in the Guangdong-Hong Kong-Macao Greater Bay Area.
Through close communication and consultation, Hong Kong and Shenzhen have jointly promulgated measures for supporting the linked development of Shenzhen and Hong Kong venture capital in Qianhai
Christopher Hui Ching-yu, Hong Kong Secretary for Financial Services and the Treasury
The Qianhai authority will support eligible Hong Kong’s limited partnership funds (LPFs) to set up qualified investment entities in the zone to begin onshore investment.
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It will also enhance the Qualified Foreign Limited Partnership (QFLP) pilot program by optimizing the entry threshold and application procedures, expanding the investment scope, and reducing the processing time.
The QFLP program is a major channel for overseas investors to participate in mainland projects. According to data released by Qianhai authority, the zone has attracted 111 QFLP management firms so far, and Hong Kong investors have participated in 70 percent of them.
In addition, Qianhai’s qualified domestic investment enterprises investing in eligible Hong Kong innovation and technology projects will be granted a reward of 2 percent of the actual amount of investment. Each enterprise may receive accumulated rewards of up to 2 million yuan (US$290,000) per year.
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Hong Kong Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the joint policy package is a mechanism breakthrough and innovation.
A rendering of the area of Qianhai economic zone in Shenzhen. (PHOTO PROVIDED TO CHINA DAILY)
“Through close communication and consultation, Hong Kong and Shenzhen have jointly promulgated measures for supporting the linked development of Shenzhen and Hong Kong venture capital in Qianhai.”
Going forward, he said, Hong Kong will “explore with Qianhai more opportunities for financial development and promote Shenzhen-Hong Kong co-operation at a higher level under which the two cities can serve as dual engines in the GBA.”