This undated photo shows the Hong Kong-Zhuhai-Macao Bridge, a landmark project in the Guangdong-Hong Kong-Macao Greater Bay Area. (WANG JIAXIN FOR CHINA DAILY)
A local think tank has suggested that mainland authorities lift investment restrictions for Hong Kong SAR residents to help entrepreneurs set up businesses amid the resumption of quarantine-free travel between the city and the Chinese mainland.
Our Hong Kong Foundation released the report Unleashing Hong Kong Youths’ Potentials in Technology Innovation to Build a National Engine for Innovation and Entrepreneurship on Thursday, in a bid to explore the expansion of the market for scientific research outcomes for the city and promote the commercialization of such results on the mainland.
It suggested that the mainland’s relevant authorities consider gradually easing investment curbs — included in the negative list of business sectors that are off limits to overseas investors — for Hong Kong residents, subject to prior approval.
The regulations ban the financial hub’s capital flow into parts of the high-end technology and innovation sectors, such as the development and application of human stem cells, as well as gene diagnosis and treatment.
The research was conducted by both Our Hong Kong Foundation and the Ministry of Science and Technology Torch High Technology Industry Development Center
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“If the juridical person or major shareholder of an enterprise is a Hong Kong permanent resident of Chinese nationality and the enterprise is registered in the Lok Ma Chau Loop with approval, it can be allowed to put its operation to the test in the Guangdong-Hong Kong-Macao Greater Bay Area first before considering gradual nationwide expansion depending on its performance during the pilot stage,” the report reads.
Kenny Shui, research director and head of economic development of Our Hong Kong Foundation, said, “While Hong Kong enterprises cannot invest in industries such as stem cells and genetic diagnosis technology in the mainland yet, the vast potential of the loop, which serves as the pilot area for policy and institutional innovations, should be unleashed.”
The report also noted that Hong Kong businessmen may not truly benefit from the favorable policies implemented by the central government because of the unclear application guidelines.
Thus the relevant departments of the regional government should strengthen their execution capabilities when iplementing new policies. “For example, the application procedures and supporting documents required should be made clear,” it said.
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Besides, given that the mainland’s existing policies mainly provide for office space with insufficient long-term measures for startups, the think tank urged the relevant authorities to assist cash-strapped businesses more proactively in their application for public subsidies, and provide advance funds for successful applicants.
The research was conducted by both Our Hong Kong Foundation and the Ministry of Science and Technology Torch High Technology Industry Development Center. Over 130 Hong Kong residents, including those who are interested in going to the mainland or have already been on the mainland for work, were interviewed.
The special administrative region is ramping up efforts to boost its innovation and technology sector with billions of dollars of funding granted to local universities and enterprises, in line with the nation’s ambition of becoming a global powerhouse in hi-tech manufacturing.
According to the report, about 60 percent of respondents said they lack channels to acquire information to better understand the Greater Bay Area, so policy messages scattered on different websites must be integrated.
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It also proposed that Guangdong and Hong Kong jointly run universities to introduce minor or concentration programs in innovation and entrepreneurship, and allow Hong Kong university students to enroll in their penultimate or final years.
Stephen Wong Yuen-shan, senior vice-president and executive director of the public policy institute of Our Hong Kong Foundation, said that by strengthening the collaboration between the central government and the HKSAR government and encouraging Hong Kong young people to start or expand their businesses on the mainland, “complementary effects can be achieved through capitalizing on the strengths of both places”.
The report also called for enhancing patent protection, boosting recruitment and employment through job fairs by bringing together government, businesses and residents, as well as improving Hong Kong residents’ lives on the mainland by optimizing education and healthcare services.
tianyuanzhang@chinadailyhk.com