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Business / Economy

'Closer ties' for Shenzhen, HK as zone develops

By QIU QUANLIN (China Daily) Updated: 2015-04-28 10:07

'Closer ties' for Shenzhen, HK as zone develops

?The Qianhai and Shekou areas of the China (Guangdong) Pilot Free Trade Zone in Shenzhen. [Photo/China Daily]

Officials in Shenzhen, a pioneering city in China's reform and opening-up, vowed to work closely with Hong Kong for lasting economic benefits as the city's Qianhai and Shekou areas were formally established on Monday as part of the China (Guangdong) Pilot Free Trade Zone.

"The free trade zone will drive closer economic connections between Shenzhen and Hong Kong," said He Zijun, deputy director of the Qianhai Administration Bureau in Shenzhen.

Two related zones were established in Guangdong province last week: Nansha in Guangzhou and Hengqin in Zhuhai.

The two areas launched on Monday have a planned area of 28.2 square kilometers.

After the unveiling ceremony, a number of projects, mainly from Hong Kong and involved in finance and trade, were signed.

The Guangdong FTZ, along with zones in Tianjin and Fujian, is being established some 18 months after the first one launched in Shanghai. They all aim to support economic reform, promote trade and facilitate investment in new areas.

The Shenzhen areas of the FTZ will focus on international trade, logistics, finance and high-tech industries, especially when it comes to cooperation with Hong Kong, He said.

Under the FTZ framework, port and aviation resources in Shenzhen and Hong Kong will be better integrated.

Ports in Hong Kong and Shenzhen had a combined capacity of 34.78 million 20-foot equivalent units in 2014, making it the world's largest port cluster by capacity.

"The Qianhai and Shekou areas, which face Hong Kong in the South China Sea, will experience a boom in cargo and passenger flows, helping facilitate trade and investment cooperation," He said.

He provided a number of statistics on the new FTZ:

? About 100 new companies have been registered every day in the Qianhai and Shekou areas since the FTZ was approved at the end of last year.

? By the end of 2014, Qianhai had attracted more than 27,700 registered companies, with capital reaching 1.66 trillion yuan ($266.8 billion).

? Among the registered companies, 15,400 are engaged in finance and 3,919 are in logistics.

Increased investment in finance and logistics will revitalize traditional industries in Shenzhen, he said.

P. C. Lau, director of project development of SOCAM Asset Management (HK) Ltd, said that Hong Kong's international financial and trade resources would boost development of the Shenzhen FTZ.

"Hong Kong is established as one of the major international players in finance and trade. Closer cooperation between Hong Kong and Shenzhen will facilitate development of the free trade zone," said Lau.

On Monday, the customs, taxation and inspection and quarantine authorities in Shenzhen unveiled a series of policies to support the development of the FTZ.

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