Incentives offered to boost Qianhai’s financial industry
Financial companies that settle in Qianhai will be eligible for a subsidy of up to 50 million yuan (US$7.04 million) in accordance with a set of preferential policies that recently went into effect to boost the development of the financial industry in the free trade area.
According to the policies, which will remain effective until Dec. 31, 2020, financial companies that have enjoyed financial support from the city government will be eligible for a subsidy equaling 50 percent of the municipal award, up to 25 million yuan, if they settle in Qianhai, and an additional 5 million yuan if they increase the assets in their Qianhai firms.
Asset management firms and financial asset investment firms that are set up by commercial banks will receive an award of up to 50 million yuan after settling in Qianhai. Such firms are eligible for 20 million yuan if their registered capital reaches 1 billion yuan, or 10 million yuan if the registered capital is less than 1 billion yuan. One million yuan will be available for every additional 100 million yuan in excess of 1 billion yuan.
The financial incentives are also designed to boost Qianhai’s cross-border financial business.
Under the policies, fund companies that are newly approved QFLP (qualified foreign limited partner) and QDIE (qualified domestic investment enterprise) by the central authority and registered with the Asset Management Association of China will be given a one-time reward of 0.5 percent of the funds they have raised through launching fund projects, up to 500,000 yuan.
Financial support of up to 1 million yuan will be provided to encourage Qianhai companies to issue cross-border bonds in Hong Kong or other overseas markets. The support will double to 2 million yuan when issuing cross-border green bonds.
Subsidies will also be offered to encourage Qianhai financial companies to conduct cross-border financial asset trading or cross-border capital pool business.
Incentives will also be given to the financial companies that provide financial support to high-tech startups in Qianhai to boost the development of such venture capital firms.
According to the policies, investment companies will receive 5 percent and 2.5 percent of the amount they invested in nationally and Shenzhen-certified high-tech startups, up to 1 million yuan and 500,000 yuan, respectively.
Up to 500,000 yuan will be subsidized to Qianhai companies to encourage them to mortgage their inventions, patents, registered trademarks and other intellectual property rights for financing.
FinTech companies are also beneficiaries of the preferential policies. A one-time reward of 5 million yuan will be given to banks, securities and insurance companies that set up Fintech subsidiaries with registered capital of at least 50 million yuan focused on new technologies, such as blockchain, cloud computing, big data and artificial intelligence.
Qianhai-registered securities brokerages will be rewarded 500,000 yuan for helping a Qianhai startup go public.
The policies will also subsidize companies that organize international- and national-level financial summits and conferences up to 3 million yuan, or up to 500,000 yuan for sponsoring such events, twice a year.
Funds will be evenly divided among applicants for the same subsidy or incentive.