Shenzhen Qianhai issues guideline for financial cooperation with Hong Kong SAR

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A view of the Guangdong-Hong Kong-Macao Greater Bay Area special section at the China International Financial Exhibition in Guangzhou, southern China’s Guangdong Province. Photo: IC

Qianhai authorities in Shenzhen, southern China’s Guangdong Province, on Monday issued a directive containing detailed measures to support Hong Kong’s financial sectors to explore the mainland Chinese market and speed up construction of the financial city. Shenzhen-Hong Kong International in the Qianhai Economic Zone.

This is the first special policy designed to support the development of the financial sector in Qianhai – a development zone known for its experiences of opening up policies – after the central government released a new plan in September to further accelerate the opening process in Qianhai. Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.

Observers said the new directive would further promote integrated development between the Hong Kong Special Administrative Region (HKSAR) and the Chinese mainland in the Guangdong-Shenzhen-Macao Greater Bay Area (GBA), helping to boost Shenzhen’s financial strength while further strengthening and cementing Hong Kong’s role as an international financial center.

The new directive includes preferential policies to strengthen financial cooperation between Shenzhen and the Hong Kong SAR, such as a 2 million yuan reward for major financial cooperation platforms and basic financial infrastructure in the Greater Guangdong-Shenzhen-Macao Bay. There is also a 3 million yuan aid plan for fintech subsidiaries set up by virtual banks from Hong Kong to Qianhai.

According to the directive, financial institutions that meet the standards for opening entities in the international financial city of Shenzhen-Hong Kong in Qianhai could obtain tax support of up to 3 million yuan, and financial institutions in Hong Kong qualify for 1.2 times the support level.
The directive also aims to advance financial innovations in the Qianhai region. For example, local authorities will organize an annual quota of 10 million yuan for the application and promotion of the digital yuan, and institutions that carry out activities related to the digital yuan will receive 1-3 million yuan if they “settle down. In Qianhai.

As part of the national plan released in September, Qianhai is encouraged to conduct experiments with financial reforms such as connectivity with Hong Kong financial markets, cross-border use of the yuan, use of foreign currency, and green financial cooperation. .
Hong Kong SAR Financial Secretary Paul Chan Mo-po wrote in a blog post in September that the central government’s plan will provide “unlimited” opportunities for the future development of Hong Kong SAR.

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