Qianhai SZ-HK Fund Town to construct financial cluster

The Qianhai Shenzhen-Hong Kong Fund Town, which was put into operation on Nov. 22, 2018, has achieved a series of results regarding industrial gathering and its operations in the past year, attracting more than 60 financial institutions to settle in.

Dozens of well-known domestic equity and securities investment funds, public funds, and financial service providers have settled in the town, including BEA Union Investment, the first foreign-owned private equity investment fund manager in South China, Hang Seng Qianhai Fund Management, the first foreign-funded public fund management company in China, China (Shenzhen) Intellectual Property Protection Center, and UBS(United Bank of Switzerland), the world's leading private wealth management company.

Cai Jie, chairman of Shenzhen Qianhai Shenzhen-Hong Kong Fund Town Development Co. Ltd., said that the goal of the town is to create a Shenzhen-Hong Kong fund ecosystem with first-class environment, innovative development model, complete industrial chain and high-quality service, and become a fund industry cluster and cross-border wealth management center at home and abroad.

As the forefront of national financial reform and innovation, Qianhai is the area with the highest density of fund companies nationwide. As of September 2019, a total of 4,571 Shenzhen-based private equity fund managers have registered with the Asset Management Association of China, accounting for 20 percent of the country’s total. The number of Shenzhen-based partnership funds and corporate funds was 3,388, ranking second in the country. Among them, the number and scale of registered private equity fund managers in Qianhai accounted for about 70 percent of the total number of Shenzhen.

"Wealth management institutions need to develop intensively in a specific region to form an agglomeration effect, which was proved to be the most suitable model for the development of the wealth management industry by the Greenwich Fund Town,” said Cai.

In addition, the town also strives to attract Hong Kong-funded financial institutions to settle to promote the innovation of cross-border financial businesses.

Hong Kong is a hedge fund center in Asia, which has attracted a large number of well-known hedge institutions and brokers and banks that serve the hedge funds. Shenzhen is gathered by numerous high-tech startups, which are served by a large number of quality venture capital funds and institutions such as Tiantu Capital and Oriental Fortune Capital.

The town has made great efforts to integrate the advantages of Shenzhen and Hong Kong in the fund industry to promote Shenzhen-Hong Kong cooperation and attract large-scale hedge funds and foreign wealth management institutions at home and abroad to settle in Qianhai to provide financial support for startups and create a cluster of emerging financial enterprises.