The district of Qianhai has a significant role to play in China’s economic development. It is an important part of the Guangdong Pilot Free Trade Zone, a major platform for co‑operation in the Guangdong‑Hong Kong‑Macao Greater Bay Area (GBA), and a pioneering element in the country’s latest round of reform and opening up. Since the promulgation of the Plan for Comprehensively Deepening Reform and Opening Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone (or the Qianhai Plan), Qianhai has been making every effort to fulfil its mission of “relying on Hong Kong, serving the mainland and opening up to the world”. These efforts include looking to enhance mutual access between Shenzhen and Hong Kong, helping Hong Kong to integrate into the country’s overall development, and pursuing a greater degree of opening up.

On 23 February 2023, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and the People’s Government of Guangdong Province jointly released the Opinions on Providing Financial Support for Comprehensively Deepening Reform and Opening Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone (or the 30 Financial Measures of Qianhai). This sets out the specific measures by which the Qianhai Plan will be implemented, through stepping up financial co‑operation between the mainland and Hong Kong and providing strong financial support for the development of the Qianhai Co-operation Zone. The 30 proposed measures cover financial services related to people’s livelihoods, cross‑border financial services and other areas.

The 30 Financial Measures of Qianhai specifies new preferential policies designed to help integrate Hong Kong into the country’s financial reform and opening up. These policies are expected to take the co‑ordinated development of Hong Kong and the Qianhai Co-operation Zone to a higher level. This article outlines the key parts of the 30 Measures so that Hong Kong businesses can get a better understanding of what they contain. It also looks at the opportunities that the measures will make available to Hong Kong.

Highlights of the 30 Financial Measures of Qianhai

Helping Hong Kong residents to live and work in Qianhai

Among the measures which will benefit Hong Kong residents are: (1) making it easier for Hong Kong residents to open mainland bank accounts, by expanding the scope of pilot banks to open mainland type II and type III personal bank accounts through an attestation service, and launching a pilot scheme on facial recognition sign‑on for credit card services; and (2) facilitating credit financing for Hong Kong residents, allowing qualified Hong Kong‑funded commercial banks in the Qianhai Co-operation Zone to share Hong Kong residents’ credit information (subject to their consent) with their parent banks in Hong Kong, and providing credit and other financial services to Hong Kong residents living or working in the Qianhai Co-operation Zone.

The rapid development of the GBA and the increasingly convenient transport links between Guangdong, Hong Kong and Macao have led to many Hong Kong and Macao residents settling in GBA cities. There are currently more than 85,000 Hong Kong and Macao residents working on the mainland. In addition, the Guangdong Innovation and Entrepreneurship Incubation Base, which targets young people in Hong Kong and Macao, has supported more than 2,000 Hong Kong and Macao projects, employing around 3,400 young people from the two places.

The 30 Financial Measures of Qianhai is a demonstration of the Qianhai Co-operation Zone’s active attempts to establish a robust financial system, strengthen cross‑border data flows with Hong Kong, provide Hong Kong residents with more convenient and faster financial services in Qianhai, and improve the facilities designed to support Hong Kong people living and working there.

Supporting Hong Kong companies looking to start a business in Qianhai

In order to encourage Hong Kong enterprises trying to start a business in Qianhai, the 30 Financial Measures of Qianhai provides support to qualified Hong Kong‑funded small and micro enterprises in the Qianhai Co-operation Zone aiming to obtain RMB loans up to a limit of RMB5m from banks outside China.

Since the establishment of the Qianhai Co-operation Zone, many Hong Kong enterprises have indicated that Qianhai is now an ideal springboard for them to access both the GBA and mainland markets, and have expressed their full confidence in Qianhai’s business environment and legal system. To date, funds from Hong Kong worth more than US$4.9bn (HK$38.4m) have flowed into Qianhai, accounting for 95% of the district’s total foreign investment. 9,790 Hong Kong enterprises are currently registered in Qianhai, more than 85% of the 11,000 foreign‑funded businesses that Qianhai has attracted. The 30 Financial Measures of Qianhai provides Hong Kong enterprises in Qianhai with more convenient financing channels, considerably reducing their financing costs and alleviating the difficulties involved in starting a business in Qianhai.

Helping Hong Kong professionals practise in Qianhai

The 30 Financial Measures of Qianhai stipulates that Chinese‑funded securities and futures firms in the Qianhai Co-operation Zone will be encouraged to increase the proportion of their employees who come from Hong Kong and make the best use of the skills of Hong Kong professionals. Support will be given to banks to collaborate with non‑bank payment institutions, in order to provide cross‑border salary payment services for individuals based on their actual salary levels. Qianhai has been working closely with Hong Kong to align employment rules between Shenzhen and Hong Kong and promote the mutual recognition of qualifications. Currently, 18 categories of Hong Kong professionals ‑ including architects, tax advisors and tour guides ‑ can practise in Qianhai once they have filed the correct records. The publication of the 30 Financial Measures of Qianhai is expected to provide further encouragement and create new opportunities for Hong Kong professionals looking to practise in Qianhai.

Enhancing mutual access between financial markets in Qianhai and Hong Kong

In order to support the development of Hong Kong into an asset management centre, the 30 Financial Measures of Qianhai allows private banks and family wealth management institutions to establish specialised institutions in the Qianhai Co-operation Zone. Qualified Hong Kong asset management institutions will receive support setting up joint‑venture financial management companies in the Qianhai Co-operation Zone in order to engage in cross‑border asset management business. The measures also say that the scope of business for Hong Kong‑funded financial institutions should be expanded and support be given to branches of overseas and Hong Kong banks in the Qianhai Co-operation Zone to allow them to gain the qualifications needed to act as fund custodians. For instance, securities companies in the Qianhai Co-operation Zone will be allowed to forward to their mainland clients equity research reports published by Hong Kong’s licensed financial institutions containing investment analysis on equities in the Stock Connect (including research reports released by banks registered as ‘registered institutions’ under Hong Kong’s Securities and Futures Ordinance). These reports can help mainland investors make investment decisions. It’s hoped that these measures will create more business opportunities for Hong Kong’s financial institutions.

Summary

It is clear that the 30 Financial Measures of Qianhai contains a host of facilitation measures which will benefit Hong Kong residents, enterprises and financial institutions. As such, it is likely to drive the integrated financial development of Qianhai and Hong Kong. More importantly, the Measures can help enhance the level of financial co‑operation within the GBA, accelerate the pace of Hong Kong’s integration into China’s overall development and consolidate Hong Kong’s status as an international financial centre.

Highlights of the 30 Financial Measures of Qianhai