Qianhai unveils 18 measures to support VC development

Well-known overseas venture capital (VC) institutions, international asset management institutions, and Hong Kong family offices that newly registerd in or moved to Qianhai with the approval of China’s financial regulatory authority will receive a maximum subsidy of 50 million yuan (US$7.23 million).

This is part of the 18 new measures jointly rolled out by the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and the Financial Services and the Treasury Bureau of Hong Kong Special Administrative Region Government on Friday.

The measures were aimed at further boosting the joint development of the venture capital industries in Shenzhen and Hong Kong and the construction of an international scientific and technological innovation center in the Guangdong-Hong Kong-Macao Greater Bay Area.

In the future, the two-way cooperation in cross-border investment between Shenzhen and Hong Kong will become more convenient. According to the measures, Qianhai will pilot and promote the coherence of rules and mechanisms between limited partnership funds (LPF) in Hong Kong and qualified foreign limited partners (QFLP) in Qianhai, and support VC institutions in Qianhai to cooperate with Hong Kong LPFs to develop overseas business.

Qianhai VC institutions that are listed on the Hong Kong Stock Exchange will receive a maximum one-time subsidy of 2 million yuan. Special purpose acquisition companies (SPAC), established by Qianhai VC institutions and their fully owned subsidiaries in Hong Kong, will also receive support from Qianhai to broaden their financing channels to promote the joint development of private equity investment markets in Shenzhen and Hong Kong.

According to the measures, Qianhai will provide 800,000 square meters of quality industrial space in the Qianhai Shenzhen-Hong Kong International Financial Town to attract large-scale funds, international asset management institutions, well-known VC institutions, and private securities investment institutions to settle in. Each of the institutions will also receive a one-off subsidy of 500,000 yuan if they rent or purchase no less than 100 square meters of office space in the financial town. The effort aims to create an agglomeration zone for VC institutions from Shenzhen, Hong Kong and foreign countries to facilitate the cross-border flow of innovation capital and drive the local sci-tech innovation industry.

The management teams of State-level funds, industrial funds, merger and acquisition funds, international asset management institutions, VC institutions, and private securities investment institutions that settle in the financial town will be entitled to an annual subsidy at 4% of the management fee income, which is capped at 3 million yuan per year.

The measures are now in effect and will remain valid for three years.