Briefing on the Overall Development Plan on Shenzhen-Hong Kong Cooperation on Modern Service Industries in Qianhai Area (abbrivated as the Plan), which is organized by Shenzhen Municipal People's Government and sponsored by Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (abbreviated as Qianhai Authority), was held in Hong Kong SAR on December 20, 2010. Ms. Guo Li, Vice Minister of Liaison Office of the Central People's Government in the Hong Kong SAR, Mr. Fan Hengshan, Director General of the Department of Regional Economy, National Development and Reform Commission, Mr. Henry Tang Ying-yen, Chief Secretary for Administration of the Hong Kong SAR Government, Mr. Wang Rong, member of the Standing Committee of the CPC Guangdong Provincial Committee and Party Secretary of the CPC Shenzhen Municipal Committee, Mr. Liu Kun, Vice Governor of Guangdong Province and Mr. Li Yuanming, Deputy Commissioner of the Commissioner's Office of China's Foreign Ministry in the Hong Kong SAR, and Mr. Huang Guang, inspector of Hong Kong and Macao Affairs Office of the State Council attended the briefing.

The briefing is the first introduction made by Shenzhen Municipal People's Government since the Plan was approved by the State Council on August 26, 2010.

The briefing was hosted by Mr. Xu Qin, Vice Party Secretary of the CPC Shenzhen Municipal Committee and Mayor of Shenzhen. Mr. Fan Hengshan, Director General of the Department of Regional Economy, NDRC, Mr. Liu Kun, Vice Governor of Guangdong Province, and Mr. Henry Tang Ying-yen, Chief Secretary for Administration of the Hong Kong SAR Government delivered their speeches respectively. Mr. Wang Rong, member of the Standing Committee of the CPC Guangdong Provincial Committee and Party Secretary of the CPC Shenzhen Municipal Committee, introduced the Plan and the progresses made during its implementation in Shenzhen. Signing Ceremony of the Letter of Intent between Qianhai Authority and Hong Kong enterprises was also held on the briefing.

Situated by the East Estuary of the Pearl River, Qianhai Cooperation Zone stands at the convergence of the axis of the Pearl River Delta regional development and the function zone of city coastal area. It is surrounded by Shuangjie River, Yueliangwan Avenue, Mawan Avenue, and sea wall line of Qianhai Bay, covering an area of 15 square kilometers. The construction and development of Qianhai Cooperation Zone can meet the requirements of national opening-up strategy and nurture new edges in global competition. It is conducive to the industrial transformation and upgrading by taking full advantages of modern service industry and speed up the change to a new economic development mode. It is a new carrier that can deepen Guangdong-Hong Kong-Macao cooperation. Under the framework of One Country, Two Systems, it is a new way to deepen the cooperation with Hong Kong. Shenzhen, as a Special Economic Zone, will continue to be a pioneer and leader to gain new experiences for scientific development.

According to the Plan, Qianhai will engage in modern service industry with joint development and cooperation between Shenzhen and Hong Kong. By leveraging the comparative edges of Guangdong and Hong Kong, cooperation between the two sides will be further tightened. Industrial restructuring and upgrading propelled by modern service industry is a useful exploration for China to create a new opening up layout with a more open economic system, being the example to lead China's endeavor to change development mode and realize scientific development. Under the framework of One Country, Two Systems and Guangdong-Hong Kong Cooperation, Shenzhen and Hong Kong will continuously upgrade exchange and cooperation mechanism and mode, deliberate and work out policies and measures, and initiate promotion project, so as to push forward the development of Qianhai.

According to the Plan, Qianhai is positioned as the exemplary zone for modern service industry innovative cooperation between Guangdong and Hong Kong, bearing 4 functions to be the modern service industry institutional innovation zone, modern service industry development cluster zone, pioneering zone for cooperation between Hong Kong and the Chinese mainland, as well as the guiding zone for industrial upgrading in Pearl River Delta Region. Priorities will be given to four pillar industries, namely, finance, modern logistics, information service, science and technology service, as well as other professional services. Based on the target laid by the Plan, by 2020, Qianhai will be built into an international modern service industry cooperation zone with sophisticated infrastructure. It should establish a modern service industry system that is structurally-rational, international and influential, equipped with systems and legal environment suitable to the modern service industry. By attracting many world renowned companies in modern service industry, Qianhai should become an important production service center in the Asia Pacific region and an important base for international service trade, playing an important role in world modern service industry.

Taking the condition and industrial development into consideration, Qianhai will establish a layout consisting of Central Business Area, Bonded Port Area，Comprehensive Development Area，and Coastal Recreation Belt.

Central Business Area situates to the south of Shuangjie River and the north of Haibing Avenue. By drawing up useful experiences of CBD development and management of world developed cities, Central Business Area will give full play to finance, information, trade, accounting and other modern services industries, develop headquarters economy and become the center to showcase the image of Shenzhen and Hong Kong as international cities.

Bonded Port Area locates in the south of Chanwan Road. Based on the existing Qianhai Bay Bonded Port Zone, the Bonded Port Area will be set for modern logistics, shipping services, supply chain management and innovative finance.

Comprehensive Development Area locates in the south of Binhai Avenue, north of Chanwan Road. Considering the coordinated development in Qianhai, Comprehensive Development Area is a reserved part for the potential extension of Bonded Port Area and Central Business Area. It will serve as a multi-functioned, comprehensive industry cluster.

Coastal Recreation Belt, spreading along the coast, locates in the west of Tinghai Road. By incorporating ecology, landscape and culture, it will be a quality public place for people to enjoy outdoor activities.

According to the Plan, customized policies and institutions favorable to modern service industry will be set and put in place in Qianhai, with a view to creating a most business-friendly environment worldwide. At the current stage, seven special policies are being incubated.

Law-based and efficient government service: The Plan highlights that Hong Kong as a role-model in urban management and civil service delivery provides the best reference for Qianhai to create a world-class public service environment, thus closer cooperation will be followed in facilitating Qianhai to build efficient, clean and service-oriented governance, streamline and standardize administrative approval and examination items, provide one-stop service in business registration, licensing, talent recruitment, property registration, etc. Moreover, the Plan also highlights Qianhai has been given the power to examine and approve non-financial administrative items, a privilege enjoyed only by municipalities specifically designated in the state plan. As for the administration of special sectors like financial service, national regulatory authority will set up branches in Qianhai to exercise direct supervision while cooperating with Qianhai Authority to explore new practices.

A role-model in building socialist legal framework: With the guidance of national legislature, tentative efforts will be made in Qianhai, by leveraging the legislative power of Special Economic Zone, to establish the legal framework both adaptable to international laws and practices and China's local conditions, in particular to explore the mechanism on non-governmental mediation of commercial disputes. In light of relevant national laws and local contexts, Shenzhen and Hong Kong will strengthen judicial cooperation to set up corresponding legal bodies and introduce non-governmental actors in commercial disputes mediation.

Tax Incentives: According to the Plan, six specific tax incentives on modern service industry are being made for Qianhai in the context of national tax system reform to facilitate Shenzhen-Hong Kong cooperation, power Qianhai's growth and create appealing social and economic environments to talents to work in Qianhai.

Land Use: According to the Plan, Qianhai can reclaim land from the sea for its potential development and expansion in accordance with the law, when the master plan for construction land permits, flood discharging and tide inflow capacities not threatened, and marine ecology well protected.

Efficient and passenger-friendly checkpoint service: According to the Plan, greater joint efforts will be made by Shenzhen and Hong Kong to reform customs clearance, quarantine and inspection, in particular to explore inspection data sharing mechanisms, "E-checkpoint service" and "E-customs clearance" , all of which will facilitate the flow of human resources, cargo and vehicles in Qianhai.

Social Safety Net: Education, medical services and social security systems in Qianhai and Hong Kong will be gradually integrated so as to make Qianhai a more convenient and enjoyable place to work and live in.

Favorable environment for talent: Aiming to be a talent magnet, preferential policies and supportive packages will be made to attract and retain high-end professionals in modern service industry to work and live in Qianhai; more efforts will be made to facilitate the flow of talents between Shenzhen and Hong Kong by strengthening information sharing, training and exploring the mutual recognition of qualifications; plus, more input will be placed to education and training with a view to fostering industry-targeted talent pool in Qianhai, bolstering and fueling its growth in the long run.