Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone

This work was prepared by Pierluigi Damiano Lenge. This work is intended for general information purposes only and is not intended to provide, and should not be
used in lieu of professional advice. The publisher Lenge & Partners assumes no liability for readers’ use of the information herein and readers are encouraged to
seek professional assistance with regard to specific matters. Any conclusions or opinions are based on the specific facts and circumstances of a particular matter
and therefore may not apply in all instances.
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Qianhai Shenzhen-Hong Kong
Modern Service Industry Cooperation Zone

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TABLE OF CONTENTS
What is Qianhai?
Strategic position and the advantage of close proximity to Hong Kong
Special Authority and innovative support mechanisms
Special policies and their advantages
The Qianhai Bay Bonded Port Area
Port supervision and Customs and Clearance Measures of the Qianhai Bay Bonded Port Area
Qianhai legal environment and the Qianhai anti-corruption bureau
Qianhai Talent Trial Zone and the Qianhai Youth Entrepreneur Innovation Hub
Cooperation between Shenzhen and Hong Kong and collaboration with chambers in Hong Kong

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What is Qianhai?
Qianhai Shenzhen-Hong Kong Modern Service
Industry Cooperation Zone (前海深港现代服
务业合作区), also known as Qianhai New
District or simply Qianhai, is a commercial
development area in Shenzhen.
On August 26, 2010, the State Council
approved the overall development plan for
the Shenzhen-Hong Kong Modern Service
Industry Cooperation Zone with the purpose
to build in the district of Qianhai in Shenzhen,
a new area which can lead the development
in Shenzhen and the Pearl River for the next
30 years.
According to plans made by the Qianhai
administration, as the pilot district for
cooperation between mainland China and
Hong Kong and innovation in the service
industry, Qianhai undertakes four functions:
 An innovation area for modern
service industry sectors;
 A cluster area for the development
of modern services;
 A pilot area for close cooperation
between the Mainland and Hong
Kong;
 A leading area for industry upgrades
in the Pearl River Delta.
The Qianhai Cooperation Zone is also the
only platform supported by the government
to boost the cooperation between Shenzhen
and Hong Kong in modern service industry.
Moreover, it enjoys preferential policies and
strategic advantages in reform and opening-
up as it takes on vital role in carrying out
three major national development plans
including the One Belt and One Road strategy
and Pilot Free Trade Zones.
Strategic position and the advantage of close
proximity to Hong Kong
Qianhai is a district of Shenzhen city, and it is
situated in the Pearl River Delta. Enjoying an
important strategic location in Guangdong
Province, Qianhai, more than other places in
China, can offer outstanding transportation
advantages.
With the completion of railways and roads by
2020, Qianhai will be within a one-hour
commuting radius of the Pearl River Delta
and within a 30-minute commuting radius of
Hong Kong.

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The main arteries of traffic in the region,
including the Shenzhen-Zhongshan corridor,
Shenzhen Western Port, Shenzhen North
Station and Guangzhou-Shenzhen Yanjiang
Highway all pass through Qianhai, and the
Shenzhen and Hong Kong airports are both
very close to Qianhai.
Furthermore, Qianhai is part of Shenzhen,
which is currently one of the most active
cities in the Pearl River Delta and mainland
China for economic development.
In fact, Shenzhen’s total aggregate economic
output ranks in the first tier among cities
nationwide. Among the major Chinese cities,
Shenzhen also boasts the highest totals of
GDP per capita, foreign export volume,
number of patent applications and number
of patent ownerships per capita. Its robust
industrial base provides a large number of
business partners and enormous market
opportunities for corporations that decide to
invest in Qianhai.
Finally, Qianhai is set to strengthen and
solidify the partnership between Hong Kong
and Shenzhen inseparable once and for all.
Thanks to its involvement and considerable
weight in this project, Hong Kong will support
Qianhai in the implementation of the best
business practices and standards in order to
create its same fair, transparent, efficient
and clean business environment in Qianhai.
On the other hand, Qianhai, within the
partnership framework between Guangdong
Province and Hong Kong, will help industries
from both Guangdong and Hong Kong to
complement each other.
Special Authority and innovative support
mechanisms
In order to replicate the Hong Kong business
model in mainland China and create a “well-
regulated, transparent and reliable spot
commodities trading venue on the Mainland
backed by physical delivery and a warehouse
system to support the Mainland’s real
economy”, Beijing has guaranteed to Qianhai
an extraordinary organizational and decision-
making autonomy ever seen in China.
For instance, the Authority of the Qianhai
Shenzhen-Hong Kong Modern Service
Industry Cooperation Zone is China’s first
statutory institution, and at the same time, it

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is the first innovative management model of
statutory bodies for China.
It is a municipal administrative authority with
independent planning status to approve non-
financial industrial projects, and based on the
principles of full authorization and close
operation, the Authority can provides one-
stop service and create its own independent
service management institution.
Furthermore, the central government has
established a new administrative system in
order to coordinate the different state-level
authorities, but delegating the development
of Qianhai to local governments for a faster
and better development of Qianhai.
More specifically, a commission of the State
Council, as top state level authority, control
the Qianhai Development and Construction
Inter-ministerial Departmental Joint Meeting
Mechanism.
In this mechanism, the Guangdong Provincial
Government, Hong Kong SAR Government
and the Shenzhen Municipal Government are
jointly delegated to support the Qianhai state
policy platform formation by actively issuing
policies and implementing procedures.
Another very important administrative body
is the Qianhai Cooperation Zone Advisory
Committee.
The Committee comprises well-known and
influential figures from key industries from
the mainland China and Hong Kong.
Among the main functions of the Advisory
Committee there are those of providing
advisory opinions on relevant policies for the
Qianhai’s development and coordinating the
Qianhai development and construction inter-
ministerial joint conference system.
Finally, there is the joint meeting mechanism
of the Qianhai Bay Bonded Port Area, which is
composed of 15 port units, government
departments, enterprises and it is led by the
Authority of Qianhai.
Special policies and their advantages
As a modern service industry cooperation
zone, Qianhai's administration has planned
to focus on finance, modern logistics,
information services, technology services,
and other professional services.
For example, in the financial sector, the
Qianhai administration plans to promote
innovation and partnership within the
financial industry by relaxing currency flows
between Qianhai and Hong Kong, reinforcing

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Hong Kong's position as an offshore RMB
settlement center.
This initiative is meant to spearhead the
internationalization of Shenzhen's capital
market, as well as strengthen the partnership
between securities markets in Shenzhen and
Hong Kong. Qianhai's financial services will
aim to complement that of Hong Kong's, in a
conscious effort to avoid direct competition
and create a win-win situation.
More specifically, Hong Kong banks will be
allowed to extend commercial RMB loans to
Qianhai-based onshore mainland entities. The
People's Bank of China has also indicated that
such loans will for the first time not be
subject to the benchmark rates set by the
central bank for all other loans in the rest of
China.
The Qianhai Equity Trading Centre will
provide loans to Qianhai enterprises by
launching the RMB-denominated wealth
management products (WMPs) on the Hong
Kong capital market.
However, on June 2012, the State Council
approved the following policies:
Financial Policies:
 Qianhai will experiment with the
expansion of offshore RMB fund flow-
back channels. Qianhai will support
the development of Hong Kong as an
offshore RMB settlement center and
will establish a cross-border RMB
innovation zone in order to facilitate
the development of RMB financial
services.
 Qianhai will support the issuance of
RMB loans from local banking
institutions to international projects,
and from Hong Kong-based banking
institutions to Qianhai projects under
the Mainland and Hong Kong Closer
Economic Partnership Arrangement
(CEPA).
 Qianhai will be supported in its efforts
to establish an equity investment
parent fund in Qianhai.
 Hasten the internationalization of
Qianhai's financial market by opening
up to Hong Kong market under the
stipulations of CEPA.
 Qianhai supports the development of
innovative financial instruments, and
financial products that support the
development of the real economy.
 Hong Kong and international banking
institutions will be encouraged to
establish their headquarters in
Qianhai in order to quicken to pace of
the internationalization of Qianhai's
financial industry.

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 Qianhai’s financial reform and
innovation are supported to build an
experimental and exemplary zone
that serves as a model for our
financial industry as it opens up to the
international community. Qianhai is
being allowed to explore and expand
its channels for the flow of RMB from
abroad. This support for developing
offshore RMB business in Hong Kong
is useful to create an unprecedented
cross-border RMB business zone. The
goal is to pave a new path beyond the
region on capital matters, and to
promote the establishment of a new
management approach for exchange
controls.
Taxation Policies:
 Eligible companies such as advanced
high-tech companies or innovative
services companies which will be
registered in Qianhai are subject to a
15% preferential corporate income
tax rate.
 Eligible professionals such as high-
skilled professionals or workers who
are employed in Qianhai are exempt
from personal income tax.
Legal Policies:
 Qianhai will support Hong Kong
arbitration agencies' establishment of
affiliated agencies in Qianhai.
 Qianhai will support the joint
operation of mainland and Hong Kong
law firms under CEPA and its
supplementary agreements.
Technology and Other Professional Services:
 The priority of Qianhai is that of
developing innovative technologies,
creative design services, but also
modern and innovative professional
services, in order to provide the
companies established in Qianhai
such as manufacturers, with new
technologies and other professional
services to support their reforming
efforts and facilitate a smoother
transition. Corporations that have
passed an evaluation standard for
technically advanced services can
enjoy a corporate income tax rate of
15%. In addition, employee education
and training expenses that do not
exceed 8% of the corporation’s total
salary can be deducted pre-tax.
Information Services:
 Qianhai administration will promote
the development of software and
information technology services, as
well as facilitate the cooperation
between mainland and Hong Kong
telecom operators.
Human Resource Policies:
 Qianhai's human resources services
and management mechanism will be
innovated and relevant policies and
measures will be formulated to
attract professional and international
workforce, including but not limited
to professionals from Hong Kong,
Macau and Taiwan, as well as Chinese
citizens who are currently working or

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studying abroad or those who have
returned to China.
 Professionals with certification from
Hong Kong will be permitted to
provide professional services, the
boundary of which is confined to
Qianhai and to the enterprises and
residents of Qianhai.
 Always qualified professionals from
Hong Kong with the certificates of
Certified Public Accountant of China
are permitted to serve as partners of
mainland Chinese accounting firms.
The pilot trial procedures will be
formulated by Shenzhen and will be
implemented in Qianhai upon the
approval of the Ministry of Finance.
Education and Health Care Policies:
 Education service providers from
Hong Kong are allowed to set up
international schools invested by
Hong Kong investors in Qianhai upon
approval.
 Health care service providers from
Hong Kong are permitted to establish
hospitals invested by Hong Kong
investors in Qianhai upon approval.
Telecommunications Policies:
 Hong Kong and Macau telecom
operators are permitted to establish
telecom joint ventures with mainland
Chinese operators in Qianhai under
the stipulations of CEPA.
 Qianhai will establish a dedicated
telecommunications channel in order
to provide a better and faster channel
for telecom businesses as well as
other firms in Qianhai.
Modern Logistics Policies:
 Qianhai has already implemented
some of its preferential policies in
order to effectively allow logistics
providers to offer improved and more
flexible services across mainland
China and globally. Modern logistics
corporations that are registered in
Qianhai and meet specific conditions
can receive different business tax
benefits. For instance, the income
that insurance companies registered
in Shenzhen receive from providing
international shipping insurance
services to corporations registered in
Qianhai is exempt from some taxes.
Qianhai Bay Free Trade Port Zone:
 The Qianhai Bay Free Trade Port Zone
is one of the most important and vital
components of Qianhai Cooperation
Zone. The Qianhai FTPZ include the
construction of 7 warehouses with a
total area of 400,000m² already
completed, among which 12,000 m²
for refrigerated bonded warehouses.

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The Qianhai Bay Bonded Port Area
On October 18, 2008, the State Council
approved the establishment of the Qianhai
Bay Bonded Port Area which is the prime area
for promotion and critical functional zone of
the Shenzhen-Hong Kong Cooperation Zone
of Qianhai.
The area measures measuring 3.71 square
kilometres and the purse seine area in its first
phase measured 1.17 square kilometres.
The area comprised a harbour district and
parks, with three hundred thousand-tonnage
berths in the harbour district, integrating
operations with the western harbour district
of Shenzhen City, and seven modern
warehouses have been built in the parks with
an area for a structure measuring 400,000
square metres, of which the cold storage
area is 12,000 square metres.
Dealing with the main trading activities
related to distribution, transfer, international
purchasing, insurance, agency, inspection,
maintenance and shipping, the Qianhai Bay
Bonded Port Area implemented precedent-
setting policies superior to those of other
special economic zones, such as carrying out
special fiscal and taxation policies, exploring
pilot cross-border loans and building cross-
border RMB business innovation pilot areas.
It enjoys the supervision policies of special
revenue, foreign currency and trade
facilitation of a bonded port area, and also
benefits from trial policies in finance and
taxation as well as the finance and talent of
the Qianhai cooperation area.
The Qianhai Bay Bonded Port Area has
established an enterprise credit system to
motivate trustworthy enterprises and built a
logistics public information service platform
to achieve paperless customs clearance. On-
line clearance of goods will maximize
convenience for enterprises in the port area.
Electronic filing management is conducted
for import and export cargo between bonded
port area and overseas destinations so that
cargo in the area can be moved freely.
Bonded supervision is applied to cargo
transited between other bonded areas.

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Tax and foreign exchange policies have been
applied to bonded zones, export processing
zones and bonded logistics parks. Integration
linkages have been achieved in bonded zones
and ports.
Port supervision and Customs and Clearance
Measures of the Qianhai Bay Bonded Port
Area
According to the Overall Development Plan
for the Qianhai Area, approved by the State
Council, the Qianhai Bonded Port Area, can
implement current international practices or
policy and institutional innovation in special
customs supervision areas in order to be
more competitive and offer the best services
on the international market.
The Customs, Inspection and Quarantine,
and other port inspection units currently use
more convenient and advanced customs
clearance management models, including
loosening first-line restrictions so that cargo
in the area can be moved freely, rebating
taxes upon the entry into the area, and
electronic filing of import and export cargo
between bonded port area and overseas
destinations.
Inspection and quarantine departments can
conduct overseas cargo quarantine instead
of inspection upon entry into the free trade
port zone as currently required.
The zone and port integrated operations
include:
 An Integrated management system
between Qianhai Bay Bonded Port
Area and Shenzhen western ports.
Instead of the traditional transit
mode, a direct allocation is used for
the flow of goods between the two
sides;
 A cross-border customs clearance to
make faster the flow of goods and
other transit procedures between the
bonded port areas of Huangang,
Shenzhen Bay, and other first-line
ports free of sealing.
The classification management mode for
innovation of the Bonded Port Area allows
some high-credit companies to discharge
goods into warehouses and then go through
customs declaration procedures, conducting
warehousing inspection on relevant goods,
on the basis of the enterprise clearance
credit positions in the in-and-out zone.
In addition, the Bonded Port Area provides
customized services for enterprises.

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Qianhai legal environment and the Qianhai
anti-corruption bureau
In order to attract investments from the best
international firms and enterprises, Qianhai
is committed in the creation of a safe and fair
business environment supported by a legal
system based on that of Hong Kong.
By introducing international guidelines and
importing laws and regulations of Hong Kong,
Qianhai will implement a legal system able to
support the creation and development of the
most modern service industry.
The judicial system and its mechanism of
resolution disputes will be managed by three
organs, the Shenzhen Court of International
Arbitration, the Qianhai Tribunal, and the
Qianhai Anti-Corruption Bureau.
Established on May 2013, the Qianhai Anti-
Corruption Bureau (QACB) is a professional
supervisory organization to implement the
most efficient anti-corruption supervision
methods and mechanisms.
The Bureau is under the direct under the
direct supervision of the Shenzhen Municipal
Committee and the Shenzhen Municipal
Government, and it has an establishment of
17 staff authorized from the Municipal
Commission for Discipline Inspection and the
Municipal Supervision Bureau respectively.
Qianhai Talent Trial Zone and the Qianhai
Youth Entrepreneur Innovation Hub
The Overall Development Plan of Qianhai
expressly stated that Qianhai Shenzhen-Hong
Kong Modern Service Industry Cooperation
Zone is aimed at creating an accommodating
environment for talents.
For this purpose, the Qianhai Shenzhen-Hong
Kong Special Talent Zone was established in
June 2011.
The Qianhai Talent Service Center is a center
within the Talent Zone which carries out
three main functions:
 Implement the Qianhai’s new talent
mechanism and political innovations;
 a platform for talent services;
 a platform for the communication
and exchange of information.
Always in order to attract and retain qualified
workforce, the Qianhai’s administration is
establishing an internationalized education
system, as well as a Hong Kong-standard
health care system.
All Qianhai buildings will meet international
environmental standards, and the energy
consumption of buildings will be closely
monitored and controlled.
The Qianhai administration already planned
150 million yuan investment in reforestation,
and investments in clean energy, water and

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waste recycling as well as sustainable urban
management.
The Qianhai Youth Entrepreneur Innovation
Hub is an area that will become a community
dedicated to the facilitation of innovation in
young entrepreneurs, providing them with
sources of venture capital, the advantage of
starting up in one of the most active
economies in China, and the opportunity to
network with companies as well as like-
minded individuals from abroad, particularly
Hong Kong youths.
The cost of research and startup in the
Qianhai Youth Hub is partially subsidised.
The prioritised industries in this area are
consistent with Qianhai's overall blueprint,
including innovative technology, information
technology, modern logistics, and cultural
and artistic innovation. The development of
professional services such as finance,
accounting, and law, as well as computer
science, e-commerce, statistical analysis,
animation, new media, 3-D printing, design,
virtual reality, and clean energy are strongly
supported by the Qianhai administration.
The Hub will have facilities that help youth
entrepreneurs obtain funds from venture
capital, public funds, and subsidies from the
Qianhai administration, providing them with
the resources to either initiate an idea or
continue developing their innovation.
In addition, the Qianhai Youth Hub is situated
beside the Qianhai Enterprise Dream Park,
giving the youth entrepreneurs a chance to
network with companies, offers for careers,
and venture capital.
In addition to a lab area with facilities such as
recording studios and 3-D printing labs,
participants in the Qianhai Youth Hub will
have access to the facilities in most public
labs for free.

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There is an instructional building where
professors and professionals give seminars,
career advice, or provide professional
guidance to youth entrepreneurs, and an
exhibition hall for the participants' work and
ideas. International and Hong Kong youth
participation in this hub is strongly supported
by the Qianhai administration.
This community will be managed by the
Qianhai administration, the Hong Kong
Federation of Youths, and the Shenzhen
Youth Federation. This project will be
completed by the end of 2014.
Cooperation between Shenzhen and Hong
Kong and collaboration with chambers in
Hong Kong
On 25 November 2013, the Authority of
Qianhai and the Hong Kong Science and
Technology Parks (HKSTP) officially signed
the “Cooperative Agreement between the
Authority of Qianhai Shenzhen-Hong Kong
Modern Service Industry Cooperation Zone of
Shenzhen and the Hong Kong Science and
Technology Parks Corporation” to enhance
communication and cooperation on the
technology front between Qianhai and Hong
Kong.
The HKSTPC is a statutory body set up by the
Hong Kong SAR Government, and it monitors
Hong Kong Science Park, InnoCentre, and
three industrial estates located in Tai Po,
Yuen Long and Tseung Kwan O.
It is also a public technical platform with an
IC Design Centre, Solar Energy Technology
Support Centre, Material Analysis Laboratory
and a Biotech Support Centre. It focuses on
fields such as telecommunication, green
energy, electronics, biotechnology, precision
engineering and related functions such as
technical support, professional services and
science and technology business incubation.
Another crucial agreement is that signed in
March 2014 between the Authority of
Qianhai and the Hong Kong General Chamber
of Commerce (HKGCC), the Federation of
Hong Kong Industries (FIHK), Hong Kong
Industrial Commercial Association (HKICA),
the Manufacturers' Association of Hong Kong
(CMA) and the Chinese General Chambers of
Commerce (CGCC).
The Qianhai Authority has also started a joint
project with the Hong Kong Chinese Gold and
Silver Exchange Society (CGSE), supporting

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the society and its establishment of “CGSE
Qianhai Precious Metals Logistics Assay
Centre”, providing service and support for
the upgrade of gold and jewellery producers
in the Pearl River Delta.

Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone

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