Comprehensive Policy

General Development Planning for Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen

  In the 30-year history of the Shenzhen Special Economic Zone, the Shenzhen government has followed the decision and arrangement of the Party’s Central Committee and the State Council, to fully utilize the regional advantage of neighboring Hong Kong. Shenzhen has been acting as a leading role in the process of reform and opening up, China’s system innovation and introduction of modern manufacturing industry. Right now is the important period of realizing scientific development and accelerating the transformation of economic development method. To advance the opening up and cooperation of modern service industry is a strategic decision for China’s further reform and opening up. It is also the new mission for Shenzhen Special Economic Zone in the new era. Outline of The Pearl River Delta Reform and Development Plan (2008-2020) (hereafter referred to as Outline) and General Plan for Comprehensive Coordinated Reform of Shenzhen (hereafter referred to as Outline General Plan) requires Shenzhen to act as a pilot role and designate Qianhai as a platform to promote the cooperation among Guangdong, Hong Kong and Macau in modern service industry. To this end, General Development Planning for Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen was developed. 
  Qianhai is located in the west of Shenzhen, the east coast of Pearl River estuary. It is adjacent to Hong Kong and Macau. The planned area covered 15 square kilometers, and the planning period is till 2020. This plan is the action plan for Shenzhen-Hong Kong cooperation for modern service industry development and the basis for development of related special planning.
  1. General idea
  This plan is to give full play to the pilot role of the special economic zone and utilize the comparative advantages of Guandong and Hong Kong to further deepen the close cooperation. The development of modern service industry in Qianhai is to promote industrial structure optimization and upgrade via the development of modern service industry. Useful exploration will be carried out for building China's new structure of opening up and a more open economic system. Qianhai will play a leading role in the changes of China’s development method and the realization of scientific development.
  (1) Significance
  -- Planning is in favor of achieving the new requirements of national opening up strategies, and to cultivate new advantages for global competition. Cooperation and development of modern service industry is the inherent requirement to improve our open economy. By utilizing the advantages of Hong Kong's developed service industry and strengthening the cooperation with Hong Kong and Macau, so as to develop modern service industry in Qianhai from a high-level and high quality starting point, and to achieve  breakthrough in key areas. This will help improve the internationalization level of services industry, and enhance the international competitive advantage and international resources allocation capability to provide better service support for China's manufacturing industry in the international arena.
  -- Planning is in favor of promoting industrial restructuring and upgrade through modern service industry, and to explore new ways to accelerate the transformation of economic development mode. Vigorous development of modern service industry is an effective way to accelerate the transformation of economic development mode. Base on leapfrog development, Qianhai focuses on introducing and cultivating a number of production services companies with international influence and regional service capacity, to create a gathering place for modern service with prominent features. This is not only conducive to promoting the transformation and upgrading of world-class Pearl River Delta manufacturing industry base, forming a modern industrial system driven both by modern service industry and advanced manufacturing industry, but it is also conductive to the exploration of our new models of transforming economic development.
  - Planning helps to enhance the level of regional cooperation and build a new platform for cooperation between Guangdong, Hong Kong and Macau. Pearl River Delta region is an important international gateway. To promote Guangdong, Hong Kong and Macau to work closely is an important part of enhancing China’s level of regional cooperation. Qianhai is at the center of Guangdong, Hong Kong and Macau region. Through developing modern service industry cooperatively, a regional modern service center and a new platform for cooperation among Guangdong, Hong Kong and Macau will be fostered. This will help speed up economic integration and enhance the overall competitiveness of Guangdong, Hong Kong and Macau. A new path will be opened for open cooperation and coordinative development of regional economy.
  -- Planning is in favor of exploring new ways to deepen cooperation with Hong Kong under the "one country two systems" framework. Modern service industry is in a pivotal position of Hong Kong's economy. It expands the market hinterland and it is also an inherent demand of Hong Kong's economic development. The development of modern service industry cooperatively in Qianhai, further implementation the "Closer Economic Partnership Arrangement" (hereinafter referred to as CEPA), acceleration of linking the Hong Kong’s service industry and the Mainland market, expansion of Hong Kong's service industry, are conducive to exerting the advantages of the two markets and two mechanisms, enhancing economic vitality and resilience of Hong Kong. This series of action can also consolidate and promote Hong Kong position as the international economic center; maintain Hong Kong's long-term prosperity and stability; achieve common prosperity and development of the two regions.
  - Planning is in favor of continuing Shenzhen Special Economic Zone’s pilot role and accumulating new experiences of scientific development. Continue to play a leading role in the reform and opening up is a new mission of the special economic zone in the new era. The cooperative development of modern service industry in Qianhai is an opportunity to utilize Hong Kong’s advantages. By learning to apply advanced international experience, forming strengths and advantages of new policy and mechanism of Shenzhen, to promote innovation of development model via policy and system innovation for the realization of scientific development.
  (2) The Basis for Cooperation.
  -- Regional environment. Qianhai has a unique geographical advantages and infrastructural condition. It is at the intersection of the Pearl River Delta development spindle and coastal cross-functional expansion strip. It is also close to two airports in Hong Kong and Shenzhen, Shenzhen-Zhongshan cross-river channel, Shenzhen Western Port and Shenzhen North Station. The Guangzhou-Shenzhen highway runs through Qianhai. Qianhai is equipped with good air and sea traffic conditions and outstanding advantages of integrated transportation. It has an important strategic position in the Pearl River Delta region.
  -- Policy environment. Planning and General Plan clearly require closer cooperation between Shenzhen and Hong Kong to strengthen and accelerate the planning, construction and structure innovation in Qianhai. Hong Kong-Guangdong Cooperation Framework Agreement further defines Qianhai as a key Hong Kong-Guangdong cooperation zone. A series of cooperation agreements have been signed for infrastructure, industrial development, environmental protection, factor mobility, etc., in Shenzhen and Hong Kong. An initial policy framework has been formed for Shenzhen-Hong Kong cooperation in Qianhai.
  -- Industrial environment. As an international financial, trading and shipping center, Hong Kong is one of the world's most developed regions. Its service industry is accounted for 92.3% of GDP, the total value of service exports ranks in the world's top 10 cities. Shenzhen has rapid development of service industry. Its infrastructure and overall strength of the service industry sector is growing constantly. Value added service industry accounts for 53.2% GDP. Shenzhen already has the capability to develop cooperatively with Hong Kong at a higher level. Hong Kong and Shenzhen’s strength in service industry and the huge demand from world-class manufacturing base in the Pearl River Delta provide strong support for the cooperative development of modern service industry between Shenzhen and Hong Kong.
  -- Legal environment. National People's Congress has granted legislative power to the Shenzhen Special Economic Zone. By taking the lead to explore the legislative sector in the field of modern financial services and professional services under the guidance of authority, Shenzhen has accumulated related legislative experience. Qianhai can take advantage of the legislative power to conduct pilot projects and system innovation, so as to create a legal environment that fits the open development of service industry.
  -- Innovation environment. Shenzhen has explored and established structure and mechanism that are in favor of reform and innovation. An atmosphere that encourages innovation has been created. A group of creative talent that are good at innovation has gathered in Shenzhen, making it one of the most active areas of industrial innovation. A good foundation for innovation and development for modern service industry in Qianhai has been laid.
  (3) Strategic positioning
  Guidelines and strategic positioning of cooperative development of modern service industry in Qianhai: uphold  the great banner of socialism with Chinese characteristics, take Deng Xiaoping Theory and the important thought of "Three Represents" as guidance; thoroughly implement the concept of scientific development, adhere to openness and cooperation, mutual benefit, structure innovation, scientific and efficient development, led by high-end players in the field, intensive development, overall planning, demonstration and spread the result. Under the "one country two systems" framework, deepen the cooperation with Hong Kong in order to build a more dynamic structure and mechanism. Focus on producer services, and promote cluster development of modern service industry. Enhance the optimization and upgrade of industrial structure of Pearl River Delta region and the level of cooperation among Guangdong, Hong Kong and Macau to create a demonstration zone of modern service industry innovative cooperation.
  -- System and mechanism innovation zone of modern service industry. Proactively explore and promote the system and mechanism for the development of modern service industry, and create an environment for the development of the industry in line with international practice, in order to explore new paths for innovation and development of nation's modern service industry and to create new experiences for the establishment of an open economy system.
  -- Cluster zone of modern service industry development. Concentration of superior resources and high-end elements lead to the development of headquarters economy and promote the cluster development of modern service industry. The ability of resource allocation and intensive utilization will be enhanced to build an important base for nation's modern service industry, and for the establishment of a producer service center with a strong radiation effect, which leads the upgrade and development of modern service industry.
  -- Pilot area for close cooperation between Hong Kong and Mainland. Actively implement arrangements of CEPA, conduct pilot trial, and constantly explore new modes of cooperation between Hong Kong and Mainland in service industry. Expand areas of cooperation and jointly explore the international market. Play as a leading role in advancing cooperation between Hong Kong and the Mainland's service industry sector.
  -- An area to lead the Pearl River Delta regional industrial upgrade. Shenzhen and Hong Kong will create a modern service industry highland, improve service levels, and enhance the ability of radiation, which drive the optimization and upgrade of industrial structure in Pearl River Delta, accelerate the construction of modern industrial system.
  (4) Development Goals
  By 2020, a world-class modern service industry cooperation zone with complete infrastructure will be finished. The zone will have the needed system, mechanism and legal environment for the development of modern service industry. A modern service industry system will be formed with a rational structure, high degree of internationalization and strong radiation, gathering a group of world-class influential modern service industry companies and becoming an important producer service center in Asia Pacific region. The whole area will play an important role in the global modern service industry and become an important base for global service trade.
  (5) Industrial layout.
  According to the requirements of basic conditions and industrial development of Qianhai, the advantages of Qianhai port, which connects Shenzhen and Hong Kong, should be actively utilized. A distinctive, organically associated "three-piece belt" layout shall be established along the Qianhai gulf.
  -- Business center area. Business center area is located in the south of Shuangjie River, north of Haibin Road. Base on experience of constructing advanced urban centers in the world and international management, the focuses of development will be modern service industries, e.g. finance, information, trading, accounting etc., in order to achieve cluster development of corporate headquarters and create a core area for showcasing the metropolitan image of Shenzhen and Hong Kong.
  -- Bonded port zone. Bonded Port Zone is located in the south of Chanwan Road. Base on Qianhai Bonded Port, it focuses on the development of modern logistics, shipping services, supply chain management, innovative finance, etc.
  -- Comprehensive development zone. Comprehensive development zone is located in the south of Binhai Road, north of Chanwan Road. It undertakes the role of functional expansion for the business center zone and bonded port zone. A coordinative development with the bonded port zone and business center zone will be achieved in order to build a complex industrial development zone that is highly aggregated and with comprehensive capabilities.
  -- Coastal recreation zone. Coastal recreation zone is located in the coastal area, which is to the west of Tinghai Road. Vigorous development will be carried out to build a living quarter along the Qianhai gulf. Ecological concept, landscape and culture will be integrated to establish a high-quality coastal public area.
  2. Accelerate the Development of Financial Sector
  In accordance with the guidance of national financial regulators, the overall deployment of opening up nation's financial sector, the principles of opening up and cooperation in the framework of CEPA and the scope of pilot projects in Guangdong, research and discussion shall be conducted for further development of financial cooperation between Shenzhen and Hong Kong. Research on how to lower the entry barriers of Hong Kong’s financial institutes and financial business should be conducted in order to support pilot projects of financial reform and innovation in Qianhai. A favorable financial environment should be created to attract all kinds of financial institutions in Qianhai for cluster development. Range of financial service capabilities should be enhanced in an effort to build a model area for national opening up in Qianhai.
  (1) Promote innovative cooperation in financial sector which focuses on cross-border RMB business. Continue to expand cross-border RMB business pilot projects, give full play of the regional advantages of Shenzhen as a pilot area of cross-border RMB business; promote the development of Hong Kong's offshore RMB market. Explore the path of opening up capital market and internationalization of RMB. In the framework of CEPA and under controlled risks, relevant departments will develop pilot program of Shenzhen and Hong Kong cross-border loan business. According to the management principles of direct foreign Investment, launch pilot projects of cross-border direct investment in RMB from foreign-invested enterprises’ foreign shareholder. Encourage financial institutions, which are in compliance with CEPA’s definition of "Hong Kong service provider", to setup their Chinese headquarters and branches in Qianhai. Support the establishment of financial leasing company, auto finance company, consumer finance company and micro loan company, which are conducive to enhancing market functions. Promote innovative cooperation in banking sector, focus on the strategic transformation of financial institutions and in depth financial cooperation between Shenzhen and Hong Kong. Encourage banking institutions to support the development of modern service industry in Qianhai via financial products, business processes and internal management mechanism. Increase credit and load support for high-tech industries. Support will be provided for the establishment of guarantee, re-guarantee agencies and financial institutions for SMEs. Accelerate the establishment of multi-field, multi-level financing service system to support SME financing. Explore the establishment of a new mechanism for regulation of financial services for SMEs.
  (2) Promote Shenzhen-Hong Kong cooperation in capital market steadily. According to the general plan of opening up the nation's financial sector, gradual open up capital markets in Shenzhen and expand and deepen the Shenzhen-Hong Kong cooperation in stock market, in order to achieve complementary advantages and mutual benefit. Support qualified Mainland companies which are listed in Hong Kong to go public in Shenzhen; support stock exchanges in Hong Kong and Shenzhen to launch exchange-traded funds (ETF), which track each other’s indices. Support qualified Hong Kong financial institutions to set up joint venture security companies, joint venture security investment consultant companies and joint venture fund management companies in Qianhai; support qualified joint venture security firms in Shenzhen to expand their business scope. Actively explore the opportunities of domestic securities investment business for the securities companies in Shenzhen and fund management companies’ branches in Hong Kong. Strengthen the training of high-end professionals in the financial industry in Shenzhen and Hong Kong, as well as business communication and innovative cooperation. Support Shenzhen’s high-tech zone to enter the pilot program of equity transfer system expansion, support Shenzhen’s high-tech SMEs to accelerate the pace of restructuring and listing for market financing. 
  (3) Vigorously promote the development and construction of innovation pilot area of insurance business. Support pilot projects of innovation and reform in insurance business in Qianhai. In accordance with the national insurance policies and regulations, study policies for supporting Hong Kong’s insurance agencies to enter Qianhai; study the opportunity of lowering the entrance barrier for Hong Kong residents and organizations’ access to insurance intermediary market in Qianhai. Explore the opportunity of carrying out pilot program of new types of insurance companies in Qianhai, such as captive insurance company and mutual insurance company, and vigorously develop reinsurance market. Continue to promote pilot programs for insurance for science and technology, in order to provide risk insurance services for technology companies. Support the pilot reform of commercial auto insurance pricing mechanism and insurance marketing system in Qianhai. Encourage qualified insurance agencies in Shenzhen and Hong Kong to carry out resource integration and business cooperation in the aspects of product development, channel development and claims services.
  3. The Development of Modern Logistics Industry
  According to the objective of building Shenzhen and Hong Kong into global logistics hub, in-depth cooperation between Shenzhen and Hong Kong in modern logistics industry will be promoted. The formation of a high-end logistics industry gathering area will lead to the establishment of a service base for supply chain management center and shipping service with important influence in the Asia-Pacific region, which can strengthen the capabilities of organizing manufacturing in Pearl River Delta.
  (1) Create a regional production hub and international supply chain management center. Qianhai’s bonded port can learn from international practices, and actively explore the policies and system innovation of special customs supervision area. Improve market access mechanism and policy support mechanism; focus on the developments that are related to value added service of supply chain management business, such as financial consulting, finance guarantee, settlement, custom clearance, information management, etc. Encourage the introduction of integrated service-oriented enterprises that provide logistics and related value-added services for e-commerce transactions. Support Shenzhen and Hong Kong to become the port for commercial vehicle import and export, and develop auto logistics services. Encourage businesses in the region to undertake outsourcing services such as procurement, sales, etc., building a management platform for international procurement, international distribution.
  (2) Actively develop port shipping services. Base on Hong Kong’s prominent status as international shipping hub, the cooperation of sea ports and airports in Shenzhen and Hong Kong should be promoted to expand service functions. An international shipping service platform in Qianhai will facilitate Hong Kong’s shipping operators to expand their international shipping services. Support the development of aviation market, carry out flight equipment leasing, aircraft materials trading, civil aircraft leasing and financing as well as other innovative services. Actively introduce shipping business management center, document management center, account settling center, shipping agency and other agencies to set up institutions and operate in Qianhai. Promote innovative development of shipping and aviation financing, support the formation of shipping industry fund, shipping finance leasing companies, and shipping insurance institutions, so as to promote the development of financial leasing business for civil air transportation and flight equipment. Allow companies (that are registered in Qianhai) with demand of offshore international trade, good business performance and credit record to set up designated offshore account or special account in domestic banks. Support financial leasing companies that are providing services to air transportation and shipping by allowing them to enter the inter-bank market for fund lending s and bond issuing.
  4. Development of Information Services Industry
  Coordinate the planning and construction of information infrastructure, as well as the development of software, IT and content services, in order to enhance the capability of information transmission service. Accelerate the integrated development of online and offline economy. Leverage the penetration of information technology to lead the development and upgrading of the manufacturing industry.
  (1) Develop high-level information transmission service industry. Vigorously develop a new generation of information transmission service industry, e.g. telecommunication network, radio network and the Internet. By piloting the "integration of 3 networks", Qianhai should develop into a state-of-art digital city. Actively promote the cooperation between network operator, media companies and value-added service providers. Enhance the cooperation between Mainland and Hongkong telecom operators to explore new business opportunities. Focus on the development of Internet value-added services and mobile communications value-added services, and attract excellent value-added service providers, content providers and system integrators from home and abroad to settle down in Qianhai.
  (2) Vigorously develop software and IT services. Encourage the development of system integration, information technology consulting and operational services. Robustly develop technologies such as high trusted computing, intelligent network technology, cloud computing and explore their applications. Accelerate the cluster development of software industry, and promote the construction of the Shenzhen-Hong Kong branch of Shenzhen Software Park in Qianhai, forming a software and information services park with significant impact. Development and application of industrial application software will be promoted, in order to create comprehensive advantages for software industry to provide system integration and industrial solutions service for logistics, finance and other sectors. Accelerate the development of mobile e-commerce, mobile multimedia, mobile search, mobile payments and other new businesses.
  (3) Building a logistic information exchange hub and an international e-commerce center in southern China. Support the R&D and industrialization of key Internet of Things software, in order to speed up its development. Build a standard system for Shenzhen-Hong Kong logistics information classification and coding, collection, exchange and security; enhance logistics information resources sharing among the transportation, customs, banks, the industry & commerce department, the tax department and other relevant departments; establish a logistics public information platform; start a southern logistics information exchange center. Encourage logistics enterprises to improve the research and development of new technologies in intelligent transportation and logistics management applications, in order to innovate and improve their operational management level. Accelerate the establishment of a security certification system for digital certificates; promote the application of digital signature and certificate in logistic information exchange and e-commerce. Vigorously develop e-commerce and build a safe, convenient and multi-currency compatible business transaction service platform. Enhance the connection with major international e-commerce platform and develop Qianhai into an international e-commerce hub.
  (4) To develop content services. Develop data analysis and consulting services, and actively introduce international high-level data service companies into Qianshan; cultivate local enterprises and bring them to the international level; construct a regional data analysis and consulting service center. Develop a new integrated media of broadband communications technology, mobile multimedia broadcasting and digital television. Strengthen the development and utilization of Internet digital content services, in order to attract prominent Internet companies to set up headquarters, regional headquarters in Qianhai. Develop Qianhai’s competitiveness in online game, online music, online video, online media and online advertising. Organize dedicated projects for developing advanced mobile Internet content products, online game engine and platform. Actively develop derivative products and services, e.g., web content, animation, games, and etc., and promote the development of related industries.
  5. Develop technological service and other professional services 
  Cluster technological service and other professional service resources in Qianhai, and establish regional technological innovation service center and productive professional service base, in order to provide strong support for the industrial upgrade and independent innovation for the Pearl River Delta region.
  Prioritize the development of technological innovation servicesn order to meet the need of innovation in the Pearl River Delta, the cooperation of technological service between Shenzhen and Hong Kong should be promoted. The scientific and research institutes in Hong Kong should be assisted in setting up affiliates in Qianhai and participating in dedicated technological projects at both national and regional level. New models of fiscal support for Shenzhen-Hong Kong technological innovation service should be explored. Support the development of Shenzhen-Hong Kong cross-border inspection and detection service and explore the new model of customs supervision and control to provide convenience services for technological innovation. Vigorously develop high-tech service, support the establishment of technological transfer platform and venture capital platform, and encourage the establishment of technological service institutions for technology evaluation, ownership exchange, and product industrialization. Support services such as R&D, industrial design and analysis test. Facilitate the development of Shenzhen-Hong Kong innovation circle and promote the technological transfer and product industrialization in the Pearl River Delta.
  (2) Vigorously develop creative design service. Give full play to Shenzhen as the design center, and formulate a guiding directory for creative industries to be developed by Shenzhen and Hong Kong jointly. Build a high-level creative industry park which can represent the direction of future industrial development, in order to attract well-known design institutions and well-established intermediary service institutions for cultural industry both at home and abroad.  Promote the development of creative industry to make Qianhai an international center for creative industry.
  (3) Actively develop professional service. Lift the restrictions on market access and empower the local administration with the approval authority. Actively develop high-end services such as planning, certification, management, strategy development for enterprises, enterprise image design, marketing & branding, as well as convention & exhibition services. Facilitate the development of human resource service, construction and engineering service and health care service. Assist the service providers from Hong Kong in setting up professional service institutions in Qianhai in the form of single ownership, joint venture or partnership, in order to provide customized and high-end professional services. Conduct research on how to optimize the review and approval procedure, shorten the time for the procedure and develop accounting and legal services.
  6. Facilitate regional cooperation
  Continue to further the inter-governmental cooperation between Shenzhen and Hong Kong according to the Framework Agreement on Hong Kong/Guangdong Cooperation and the mechanism of Hong Kong-Guangdong Co-operation Joint Conference. Conduct research and develop policies as well as promotion plans for joint development of Qianhai. Actively explore the cooperation mechanism and model for supervising key industries in Qianhai. Strengthen the exchange and cooperation in the legal community from Shenzhen and Hong Kong. Support public statutory bodies from Hong Kong to set up a service platform in Qianhai. Support and explore the form and approach for Hong Kong people to participate into the management of Qianhai. Encourage people in the commercial and industrial circles from Shenzhen and Hong Kong and professionals to conduct exchanges and cooperation. Set up the Qianhai Cooperation & Development Forum as an open platform for exploring cooperation in Qianhai. Give full play to Qianhai’s role as a regional productive service center, in order to lead the industrial development, transformation and upgrade of the Pearl River Delta. Actively promote the integration of Shenzhen, Dongguan and Huizhou and strengthen the integration of traffic facilities and infrastructure in the region. Strengthen the cooperation with other national economic centers and expand the scope of cooperation, in order to drive the upgrade and development of national service industry. Strengthen the exchange and cooperation with cities worldwide with highly developed service industry, actively carry out industry transfer worldwide and vigorously introduce regional headquarters of multi-national enterprises into Qianhai. Actively give full play to Qianhai’s role as an important vehicle for China-ASEAN cooperation, in order to develop service trade, innovate the form of cooperation and expand the scope and room for cooperation.
  7. Supportive measures
  i. Strengthen supportive infrastructure.
  1. Development of traffic facilities. Establish the regional highway system based on the Guangzhou-Shenzhen Pearl River High Way-Hong Kong-Shenzhen Western Corridor, Guangshen Expressway, Airport-He'ao Expressway and Shenzhen-Zhongshan Pearl River Channel. Carry out the planning and construction of Nanping Expressway and costal avenue and strengthen the traffic links between Qianhai and other important areas in Shenzhen. Conduct the preliminary work of interconnection between airports in Hong Kong and Shenzhen to strengthen the traffic link between Hong Kong and Pearl River Delta in Qianhai based on the planning and construction of the intercity rail between Huizhou, Dongguan and Shenzhen. Turn the Qianhai customs into a comprehensive place integrated with customs inspection, traffic hubs and office complexes based on the western express rail between Hong Kong and Shenzhen and the building of navigation towers in Qianhai. Optimize and improve the urban roads. Build a high-standard arterial highway network, and a high-density internal lane network, and improve the level of road landscape design. Prioritize the development of public transport and vigorously develop conventional public transport with rail traffic as the backbone. Build the supporting transfer station for public transport and strengthen the connection between rail traffic and conventional public transport to achieve “0-distance connection”. Optimize and improve the slow-walk system and develop high quality walking space.
  2. Development of important municipal facilities. Based on the principle of supplying water of different quality for different purposes, plan and build the water supply network in Qianhai and provide high-quality drinking water. With the second phase project of Nanshan sewage treatment plant, build sophisticated sewage treatment facilities and recycled water reuse system in Qianhai. According to the standard of controlling the worst flood and tide in 100 years with drainage channels and controlling the worst flood and tide in 200 years, improve the overall ability of flood and tide control. Plan and build a system of energy-conserving with centralized electricity supply and energy safeguard, and carry out the development of smart power grid. Build high-standard information infrastructure. Actively develop TV broadcasting network and internet of the next generation. Facilitate household connection fiber and promote 3G network. And build international standard internet, communication network and broadcasting network. Facilitate the joint development and sharing between information infrastructure and other facilities.
  3. Ecological and environmental protection. Form an ecological green corridor based on three rivers, namely Shuan Jie River, Gui Miao Canal, Chan Wan Canal, by making full use of Danan Mountain, Xiaonan Mountain and Qianhai costal line. Rigorously carry out environmental function zoning and water function zoning. Develop strict environmental standard for construction projects. Reinforce the pollution treatment for various water bodies in Qianhai Bay. Continuously improve the water quality and air quality in Qianhai Bay to upgrade the environmental level in Qianhai. Vigorously develop green traffic, green construction and actively promote projects of renewable energy, water conservation and water cycle, in order to turn Qianhai into an energy-conserving area with low energy consumption, low pollution and low carbon emission.
  ii. Development management
  Strengthen the cooperation between Shenzhen and Hong Kong, innovate the model of development management and conduct high-standard development, high-efficiency management based on the industrial characteristics and law of development of productive service in order to develop a world-leading modern services cluster.
  1. Model of development management. Promote the development of Qianhai in an orderly manner by adhering to the principles of overall planning, balanced promotion, guidance provided by the government and operation by market. Establish a leadership organization in Qianhai responsible for planning and coordinating important issues of development and management in Qianhai. Establish an administrative organization with a compact, highly efficient and flexible working mechanism, and explore the operation model for this body, which is responsible for the management and development of Qianhai. Establish a development company in Qianhai responsible for the primary development and infrastructure development in the region. Give full play to the market mechanism and attract modern service enterprises at home and abroad to cluster in Qianhai. Support and explore various forms of cooperation such as leasing, single ownership and joint venture development.
  2. Develop the management system. Endeavor to explore the system and mechanism to facilitate the cluster development of modern services. Encourage Shenzhen to conduct pilot projects by drawing international experience in the sectors which are not yet clearly defined by policies and regulations. Standardize the management through legislation in the special zone. Encourage Shenzhen to formulate implementation rules for the sectors where are only guided by the national government with principles. For the sectors which are well regulated by the national government, delegate the authority for reviewing and approving non-financial projects to the Qianhai local administration, which is the same with other cities stated in the Planning. For other specific industries such as financial industry, the regulatory departments can set up a dedicated organization to conduct direct supervision and support innovative practice.
  (3) Policies and measures.
  To actively explore systems and mechanisms, as well as policies that are beneficial for the cluster development of the modern service industry in order to make Qianhai an area with one of the best business environments. 
  1. To create a standard and efficient government service environment. Enhance cooperation in the public service area between Shenzhen and Hong Kong governments to improve Qianhai’s service industry. Strengthen communication and cooperation in city management between the two governments to be international. Establish an efficient and clean service-oriented management institution, and streamline and rationalize administrative examination and approval with the goal of offering convenient and efficient one-stop services in business set-up, business licensing, talent introduction, property registration and etc.
  2. To create a demonstration area of building the socialist legal system. Manage economic activities in the area strictly according to the laws; formulate regulations to enhance the rational development of Qianhai’s modern service industry within the legislative authority of the Special Economic Area approved by the National People’s Congress; increase cooperation between Shenzhen and Hong Kong in the civil mediation mechanism for commercial affairs; further improve the mechanism of relevant legal work in accordance with the laws.
  3. Supportive financial and tax policies. Under the framework of the national tax reform, we shall fully utilize Qianhai as a pilot in the tax reform of the modern service industry, strengthen the cooperation between Shenzhen and Hong Kong in an effort to create a good social and economic environment so as to enhance the development of the modern service industry and to attract all kinds of high-end talents to work in Qianhai. Insurers registered in Qianhai is exempt from business tax for the income from offering services to other companies registered in Qianhai in international shipping insurance. Enterprises registered in Qianhai are also exempt from business tax for the income derived from engaging in offshore service and outsourcing. Eligible modern logistics enterprises registered in Qianhai can enjoy a favorable tax policy in which pilot logistics enterprises pay their tax by difference; actively improve the tax policy for financial leasing businesses. With the preferential policies for building national e-commerce model cities, pilot programs can be set up in Qianhai on a right timing to explore how to leverage tax policies to stimulate the development of e-commerce. Improve the certification criteria for service enterprises with advanced technologies. Certified enterprises shall enjoy a favorable 15% tax rate for their corporate income, and staff training costs will be deducted before tax if it is no more than 8% of the total wages of the enterprise.
  4. Land policy support. According to Qianhai’s development and construction demand, proper sea reclamation is allowed for development and construction, under the conditions of not exceeding the construction land size determined by the overall plan for land utilization, not affecting flood discharging securities of estuaries and not damaging the marine environment.
  5. Collaborate in providing a convenient port service environment. Strengthen the cooperation between Shenzhen and Hong Kong in the port sector, innovate the regulatory cooperation model in customs, inspection and quarantine, border control, and establish a port monitor sharing mechanism. Accelerate the construction of an e-port, speed up the “Grand Customs Clearance” process, in order to create a more convenient customs clearance service environment for the people, goods and vehicles in Qianhai.
  6. Social security services. Encourage cooperation in education, health care, social security and other areas in an attempt to provide convenience in work and life of alien personnel working in mainland China. Enterprises in Qianhai shall sign labor contracts with staffs they employ from Taiwan, Hong Kong and Macau, and pay for their social security according to regulations. Based on the laws, mainland social insurance agencies should offer high-quality, efficient and convenient social insurance management services to employees from Hong Kong. 
  7. Create a quality environment for talents. Establish a sound mechanism that helps cluster talents for the modern service industry, formulate various supporting measures to attract high-level, highly-skilled talents for the service industry,  enhance information exchange and training between Shenzhen and Hong Kong, improve certification among employees of both sides to create a sound and convenient working and living environment. Increase investment in education and training, to give colleges and universities, vocational schools and research institutions a full play by enhancing disciplines related to production and service sectors. Accelerate to build a training system for skillful and innovative talents correspondent to the cluster development of Qianhai’s modern service industry in order to support the establishment of the Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.
  Relevant department of Guangdong Province and the State Council should realize the significance of the cooperation between Shenzhen and Hong Kong in developing the modern service industry in Qianhai, strengthen the organization and implementation of the plans, and formulate detailed policies and measures to support the development of Qianhai’s modern service industry. A coordination mechanism led by the Development and Reform Commission, involving relevant departments of the State Council, Special Administrative Region Hong Kong, Guangdong Province and Shenzhen city shall be built to enhance the guidance and coordination on major issues for the development and cooperation in Qianhai, and to facilitate the monitor and supervision of the implementation and the summarization of experiences. Shenzhen municipality should further improve the working mechanism and accountabilities to stimulate the implementation of the plans.
  The cooperation in the developing the modern service industry in Qianhai is a major initiative in the new era of reform and opening-up. The implementation of the plan is an opportunity to further unleash our minds, enhance innovation, and extend the leading role of special economic zone in order to reach new heights.