Qianhai zone policies, projects aimed at sharpening HK value

Wallis Wang

The Qianhai Shenzhen-Hong Kong cooperation zone is aimed at enhancing the SAR's competitiveness, China's National Development and Reform Commission said yesterday.

A new development plan for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will facilitate collaboration between Shenzhen and the SAR, said Guo Lanfeng, a member of the Chinese Communist Party leadership group of the NDRC.

The plan, announced last week, says the zone is targeting to attract 11,000 Hong Kong enterprises, recruit 10,000 locals, and provide 400 cross-border services by 2025.

In a news conference introducing the Greater Bay Area development in Beijing yesterday, Guo said the plan reveals the policies, reforms, and project layouts designed to serve and improve Hong Kong's competitiveness and push modern services, including the financial industry.

"We set out indicators based on Hong Kong, Hongkongers and HK companies, including the number of companies with HK investment in the zone, the employment situation of the people, and cross-border services provided in HK and Macau," Guo said.

"In terms of finance and taxation arrangement, HK residents working in Qianhai will be exempted from paying taxes higher than in Hong Kong, meaning the tax they need to pay will be the same as those working in the SAR," he said.

Guo said the zone is an important platform supporting leading industries in Hong Kong to explore the mainland market.

He said mainland authorities collected opinions from various sectors in Hong Kong, including National People's Congress deputies, lawmakers, enterprises, universities, and the SAR government, before making the new plan for Qianhai.

Chief Secretary Eric Chan Kwok-ki, who attended the press conference, said the zone is the central government's major measure to support Hong Kong's social and economic development.

"Hong Kong is building the Northern Metropolis at full speed to integrate into national development and the plan for the Greater Bay Area, including the establishment of a high-end professional services and logistics hub," Chan said, adding it is near the Qianhai zone.

Speaking in Hong Kong, Chief Executive John Lee Ka-chiu said Beijing's plan to develop Qianhai and Hengqin cooperative highlights the importance of innovation and the SAR will seize the opportunity.

Hong Kong is developing itself into an international innovation and technology center, Lee said.

With the advantage of being supported by the country while connecting to the world, Hong Kong has a top business environment with capital and information flow and global talent, and will explore new opportunities, Lee added.

Meanwhile, Secretary for Innovation, Technology and Industry Sun Dong said the government may invest in start-up tech companies to accelerate Hong Kong.

wallis.wang@singtaonewscorp.com