Qianhai has a lot of yet-to-be leased office space on the market, with vacancy rates at historic highs for a district in Shenzhen. Never mind, says international real estate consultancy Colliers, it will catch up fast and likely overtake the neighboring Houhai district.
Thanks to policy support for the special economic zone, which is attracting a surge of investment, Colliers believes Qianhaiwillbenefit from near-term and longer-term trends in thecoming years. (Read our primer on Qianhai to understand more.) Subsidies are currently generous, making rents here less than 70% of what they are in other districts, while infrastructure is being put in place that will soon make the district easier to access from the rest of the city. Continue reading Qianhai’s office rent seen catching up fast→
In the wake of the Qianhai Cooperative Forum 2019, which was held at the weekend, the city has released statistics showing how fast the special economic zone is ramping up investments and output.
Official data shows utilized foreign direct investment in Qianhai jumped 12.1% to $2.533 billion in the first six months. Hong Kong companies were the most aggressive, and now account for nearly 90% of the zone’s total utilized FDI of US22 billion. Their utilized FDI was 60% of Shenzhen’s and 20% of the entire province’s during the first half.
The Guangdong Financial High-tech Zone, located in Foshan’s Nanhai district, close to the border of Guangzhou, has attracted more than 670 financial institutions and enterprises in the past 12 years.
Yes, we have never heard of it, either.
The provincial government backed high-tech zone, which is positioned as a support base for the development of the province’s finance industry, has seen its companies execute investments worth RMB112 billion, with RMB820 billion of assets under management.
The zone is home to over 30,000 staff, primarily working as back-office support to finance companies. They work mostly in clusters. In the Qiandenghu (Thousand Lamp Lake) town, for example, there are 489 private equity funds with names such as IDG Capital, Technology Financial Group, Beijing Heju Investment, and China Trust Protection Fund. These have raised a total of RMB61 billion.
Last year, the Financial High-tech Zone set an audacious new goal for itself: to create a “blockchain” powered fintech innovation base, and to construct a complete value chain that complements the Qiandenghu Venture Capital Town.
Now that we know about it, watch this space for more detailed introduction to the zone.
According to a new index ranking China’s Free Trade Zones, Shenzhen’s Qianhai is the country’s No. 1.
The Institutional innovation Index for China Pilot Free Trade Zones (2018-2019), released by Guangzhou’s Sun Yat-sen University, gave Qianhai a score of 86.26 points. It was followed by the Shanghai Pilot Free Trade Zone at No. 2, and Guangzhou’s Nansha at No. 3.
Qianhai scored No. 1 in “transformation of government functions,” “investment facilitation,” “trade facilitation” and “legal environment.”
(If you need to understand the zones better, read our primer.)
We reported yesterday on Zhuhai planning an airport expansionwith an investment of RMB4.8 billion. If we had waited a day, we would have seen the city’s much bigger picture: the airport is only part of a plan to build an “aerotropolis”.
The new special economic zone in Shenzhen, one of three designated by Beijing for the next stage of China’s Reform & Opening, has been slow getting going, but changes are being accelerated.
As far as special economic zones go, Qianhai is not meant to impress with its size. At just 18.04 sq km, the new zone in the western side of Shenzhen, facing the South China Sea, is relatively small, with not much room for future expansion – unless further reclamation work is done. But that is just fine for local and national officials, for now. What Qianhai is set to accomplish in the coming years, under the Greater Bay Area masterplan, is all about quality rather than quantity.