“18 Measures” for Qianhai Shenzhen-Hong Kong Venture Capital Joint Development released

KUALA LUMPUR, Sept 5 (Bernama) -- The Shenzhen-Hong Kong cooperation mechanism has introduced a new policy.

The policy is an important attempt for deepening cooperation between Shenzhen and Hong Kong in Qianhai. Cooperation mechanism innovation, the building of cluster economy, the incentives for closed loop are highlights that sparked industrial attention.

On Sept 2, “Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Administration - Hong Kong Special Administrative Region Government Financial Services and the Treasury Bureau on the 18 Measures to support Qianhai Shenzhen-Hong Kong Venture Capital Joint Development” (“18 Measures”) was released in Shenzhen and Hong Kong.

This is according to the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in a statement.

In response to the Hong Kong financial industry's call for broader cooperation channel between Shenzhen and Hong Kong private equity funds, the "18 Measures" clearly stipulates that a one-time reward of two million yuan will be given to the Qianhai venture capital institutions listed on the Hong Kong Exchange.

Analysts believe that this move will further facilitate the two-way cross-border investment cooperation between Shenzhen and Hong Kong.

In addition, the industry insiders believe that the "18 Measures" is a solution to the challenges of the private equity industry in Shenzhen and Hong Kong.

According to the "18 Measures", a Shenzhen-Hong Kong international venture capital cluster will be established in Qianhai. The cluster is located in Qianhai Shenzhen-Hong Kong International Financial City, with an area of about 800,000 square metres.

It will host large funds, international capital management institutions, leading venture capital institutions as well as private equity investment institutions.

The wide range of benefits make the policy a new breakthrough, which is of great significance to deepening Shenzhen-Hong Kong financial cooperation on practical innovation.

-- BERNAMA