Hengqin, highlight of the Guangdong Pilot FTZ
2015-April-2 Source: China.org.cn
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China's State Council confirmed in December the establishment of a pilot free trade zone in Guangdong, and Hengqin New Area will be an important part of the Guangdong Pilot FTZ.

Recently, sources close to the finance management department of the new area disclosed some of reform measures of the pilot FTZ that are up for approval.

The insider said that it will be convenient for enterprises to carry out cross-border financing in Hengqin New Area. There will also be new measures to simplify tax planning coordination and opening new businesses.

First, an integrated financial market will provide new business opportunities for financial institutions from Hong Kong and Macao. It will also provide new chances for mainland enterprises to cooperate with those institutions. "Entering Hengqin means having access to financing in Hong Kong and Macao which reduces financing costs and is more convenient," the insider said.

Second, foreign enterprises engaged in cross-border business can carry out capital settlement at any time under the framework of relevant regulations.

Third, a filing system has been passed in Hengqin, which means enterprises entering Hengqin no longer need to be approved by relevant authorities, only filing is required. This is very different from many areas in China, and is very similar to Hong Kong and Macao.

In addition, the insider disclosed that opening up the account management system will be an important part of the reform measures in Hengqin.

According to the insider, the State Council attaches great importance to Hengqin, because it wants Hengqin to provide more development opportunities to the financial institutions in Macao.

"Macao has deposits of 120 billion yuan. It is more convenient to issue loans in Hengqin," the insider said.

A total of 610 financial institutions have entered Hengqin, with a registered capital of 118.1 billion yuan. Among them, the Luso International Banking opened in Hengqin on Jan. 24, 2014, making itself the first Macao-funded bank on the Chinese mainland.

Hengqin will try to attract more financial institutions; the target is 1,000 in 2015 and 1,500 in 2016. An official from the Hengqin Management Committee said that Hengqin's future lies in whether or not it can attract capital from Hong Kong and Macao.

As a region which can provide better preferential policies to financial institutions, Hengqin will become the financial subcenter after Hong Kong, Shenzhen and Guangzhou. It will bring in a group of financial institutions in cooperation with Hong Kong and Macao. In the long run, it is likely to carry out economic and trade cooperation with Portuguese-speaking countries.

 

Editor: Will
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