Qianhai, the special economic zone in Shenzhen that aims to serve as test-bed for new financial and legal reforms in the mainland, is also seeking to become a hotspot for innovative technology start-ups.
In a key development, Qianhai authorities and The Hong Kong Federation of Youth Groups are setting up a venture capital fund to help youngsters looking to establish new technology firms in the Qianhai area, a source familiar with the matter told EJ Insight.
The two parties recently signed an agreement to jointly promote the fund, which will grant up to one million yuan (US$163,400) to each technology start-up located in the Shenzhen-Hong Kong Youth Dream Factory in Qianhai. Firms can save rental costs for a year through the incubator project.
Work began on the Youth Dream Factory in December last year, and construction is expected to be completed by the end of June this year. The project, being set up at a 43,000-square meter site granted by the Qianhai administration, and involving a contract term of at least eight years, will be able to serve about 200 start-ups and offer space for Hong Kong universities to set up research centers.
It remains to be seen whether the incubator project will achieve all its objectives. Skeptics point out that the organizer – The Hong Kong Federation of Youth Groups — has no venture capital expertise and that it may not be able to help commercialize the products invented by the young people in the zone. More private funds with real professional experience should be invited to join the project in order to make it a sustainable incubator, they say.
Qianhai authorities, meanwhile, have announced plans for a promotional campaign in April with corporates that will set up offices in the Qianhai area. The corporate entities include HSBC Plc (00005.HK), Hang Seng Bank (00011.HK), Tencent Holdings (00700.HK) and Indonesia’s Lippo Group.
In December, Tencent said it plans to invest at least 10 billion yuan to develop e-commerce and internet finance businesses in Qianhai, giving a major boost to the special economic zone.
CSRC prepares way for stock delisting overhaul
The China Securities Regulatory Commission (CSRC) is investigating ways to overhaul the stock delisting system and aims to roll out the changes as well as a new system for stocks to switch listing boards this year, the Shanghai Securities News reported Monday, citing commission chairman Xiao Gang . Xiao said the regulator aims to establish a market-oriented, multi-faceted and normalized delisting system, under which fraudulent listed firms will not only be forced to delist shares but also have to compensate investors and their sponsors. In addition, the regulator plans to submit draft revisions to the securities law to the Standing Committee of the National People’s Congress in December, the report quoted Xiao as saying.
China Feb CPI up 2% on year, PPI down 2%
China’s consumer price index (CPI) was up 2 percent from a year earlier in February, marking the smallest increase in 13 months, according to data released by the National Bureau of Statistics on Sunday. Food prices rose 2.7 percent during the month, and service prices were up 2.9 percent. Inflation for the first two months of the year stood at 2.2 percent. Meanwhile, the producer price index (PPI), a gauge of wholesale prices, declined 2 percent from a year ago in February, down for the second consecutive month and marking the largest dip over the past seven months. Compared to January, PPI was down 0.2 percent.
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