China to Boost Shenzhen’s Role in Greater Bay Area Innovation

(Bloomberg) -- China plans to let Shenzhen City, which borders Hong Kong, play “a key role” in science and technology innovation in the Guangdong-Hong Kong-Macau Greater Bay Area, according to state media.

Shenzhen will be granted favorable policies including privileges in yuan internationalization, China Central Television reported on Sunday, citing guidelines issued by the Chinese Communist Party central committee and the State Council.

China will also promote the connection of the financial markets of Shenzhen, Hong Kong and Macau, including with regards to fund recognition. No details were provided.

The southern Chinese city was told to work toward giving “citizen treatment” to Hong Kong and Macau residents who work there, and was also encouraged to allow talented foreigners with permanent residency in China to start businesses in the city, according to the guidelines.

The new framework comes as Hong Kong is embroiled in the 11th week of demonstrations that show no signs of abating, with another anti-government rally on Sunday. Hong Kong’s Financial Secretary Paul Chan warned of a looming “economic typhoon” for the city on Sunday.

Other details:

• The central government supports Shenzhen raising the level of opening up to Hong Kong and Macau, and speeding up the construction of the Shenzhen-Hong Kong technology innovation cooperation area.
• Innovation sectors include 5G, artificial intelligence, cyberspace technology and bio-medical technology, and these will get support in the city as part the nation’s effort to master key technologies.
• China aims to make Shenzhen City “a pioneering area of socialism with Chinese characteristics,” which could help the country to deepen reform and open up faster as well as better implement the Greater Bay Area strategy.
• China will create conditions to push forward reform of the registration system in the ChiNext board in Shenzhen. Digital currency research and mobile payments will be supported in the city as well.
• Shenzhen is encouraged to build manufacturing innovation centers for sectors including advanced communication devices and medical instruments.

To contact Bloomberg News staff for this story: Stephen Tan in Hong Kong at ztan39@bloomberg.net;Lulu Shen in Shanghai at lshen37@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, James Mayger

©2019 Bloomberg L.P.

With assistance from Bloomberg