Shenzhen may get all the headlines, but it is Jiangmen that boasts the fastest-growing tech sector, according to provincial data. At least, that is when it comes to numbers of startups: no fewer than 601 new hi-tech enterprises were registered in Jiangmen last year.
It is a drop in the bucket: Guangdong has 11,431 hi-tech enterprises. Still, 1,240 of those now hail from Jiangmen. It is not only an honor to make the list; there is money in it, too. Hi-tech enterprises officially acknowledged by the government enjoy preferential income tax policies that kicked in at the start of last year and will run until the end of next year, so the gate is maintained tightly.
The city government has been actively encouraging growth in the sector. Most of these are small and medium-sized enterprises and the government has set up incubators to help them, with subsidies for R&D.
Read more in Chinese.
China’s No.1 property developer, Shenzhen-based Evergrande, plans to invest RMB160 billion in Guangzhou’s Nansha district to build three New Energy Vehicle bases. They will be fully integrated, with facilities for R&D and production of vehicles, batteries and electrical machinery. The goal is to produce more than one million vehicles once fully up and running, though no specific timeline has yet been given. The land parcel on which the bases will be built was acquired recently in the Wanqingsha area of Nansha. It is 858,000 sqm and RMB847 million.
Read more in Chinese.
Being a coastal province, and being China’s richest province, it should perhaps come as no surprise that Guangdong’s “marine industry” – basically, everything related to an ocean-based economy – is the country’s biggest.
For the 24th year in a row, in fact, Guangdong has again been pronounced No. 1 in this industry. It contributed RMB1.93 trillion to the province’s economy last year, up 9% over 2017, accounting for nearly one-fifth of total GDP.
Services are more important than light and heavy industries in the marine economy, and are growing faster overall. However, some standouts include the oil and gas industry (+23.3% in 2018), chemicals (+13%), and power (+12.5%). Offshore wind power projects are looking particularly promising, with six completed and 31 others under planning. Mining, biomedicine, and seawater utilization are also gaining support.
Tourism is growing the fastest, with offshore islands recently being opened to development. In a plan that runs from 2017 to 2030, 167 non-residential islands were included in the total of 196 islands open to development.Read more in Chinese.
On July 10, Foshan will begin running high-speed trains directly to Hong Kong. Similar to the announcement made yesterday about Zhaoqing, the Foshan service to Kowloon will be just one hour and 22 minutes. Second class fare is RMB225. Tickets will be available on trip.com (our recommendation).
It is not actually a new line. All that is happening is journeys previously requiring a change in Guangzhou South will now run direct, i.e., at certain times of day, trains will run all the way to and from Hong Kong.
Read more in Chinese.
The People’s Bank of China has announced it will issue RMB bills in Hong Kong in “late June”. This is being done ostensibly to “improve the yield curve” of the bonds traded in Hong Kong, yet it would appear that the announcement is timed to send a warning to speculators in the offshore market by soaking up liquidity and burning short-sellers betting on a decline amid the US-China trade war.
Since November last year, the PBOC has successfully issued RMB bills three times in Hong Kong through the Central Moneymarkets Unit (CMU) platform of the Hong Kong Monetary Authority. The latest issuance was on May 15th, including three-month bills and one-year bills of RMB10 billion each.Read more in Chinese.
The much-vaunted “Insurance Connect” – a special channel for the marketing, sales and processing of insurance products between the mainland and Hong Kong – is in progress. So says Moses Cheng Mo-chi, Hong Kong Insurance Authority chairman.
Speaking to a forum in Hong Kong this week, Cheng said it would follow the framework of the Stock Connect and Bond Connect schemes. Hong Kong insurance companies will be allowed to sell products with a “simple structure and high guarantees” under the pilot scheme in the Greater Bay Area.
Regulators are understandably cautious, given recent concerns about capital outflows. To address that, terminal bonuses and policy payouts must be returned to the mainland in their full amount, Cheng said. The initial focus will be on motor vehicle and medical insurance products.
Shenzhen has been generating waves of media attention since announcing that it will subsidize the income tax burden for “overseas talents” that choose to settle and work in the city. But there is more to this than meets the eye. It pays to understand what is happening at the national, provincial and local level.
Continue reading Income-tax subsidies: what’s it all about?
SCMP has an interesting read out today – an exclusive look inside the efforts of Huawei to develop its own operating system (OS) so that it doesn’t have to depend on US technology now that Google and Microsoft have been barred from supplying it.
The new OS is supposed to be ready after the summer, but it is unclear yet whether it can meet the biggest challenge: letting apps designed for Android run on it.
Read more on SCMP.
Last year was the worst in a decade for China’s stock markets. Although many of the country’s highest flyers have recovered this year (so far), there is no escaping the fact that fortunes were reshuffled by the turmoil that gripped stocks in 2018. This much is evident by a “rich report” released by the Shenzhen-based business magazine New Wealth.
Continue reading China’s rich list tells stories of the GBA’s rise
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.
Continue reading Qianhai – a new kind of experiment