Hengqin, Qianhai plans mark a new phase of Guangdong, Hong Kong, Macao integration

"The plans indicate that the Guangdong-Hong Kong-Macao Greater Bay Area has started a new phase of development in which it will focus more on factor mobility, regulatory convergence and market integration." said Dr. Guo Wanda, Executive Vice President of China Development Institute (CDI), during an interview with GDToday on China’s plans to develop a Guangdong-Macao cooperation zone in Hengqin and to further develop a Shenzhen-Hong Kong cooperation zone in Qianhai.

Guo Wanda said the transport network between Greater Bay Area cities has been rapidly improved while cooperation between Guangdong, Hong Kong and Macao has been furthered in such fields as scientific innovation, industrial supply chains, social welfare and the development of cooperative platforms including Qianhai and Hengqin since the plan to develop the Greater Bay Area was issued in 2019.

“A more integrated environment which is expected to bring Hong Kong, Macao residents more space for development while creating a more open and international business environment favorable to overseas investors,” said Guo Wanda.

Guo Wanda, Executive Vice President of China Development Institute (CDI) [photo provided to GDToday]

GDToday：What will you highlight from the Hengqin, Qianhai plans in terms of the benefits they bring to Guangdong, Hong Kong, Macao residents?

Guo Wanda: First of all, Hong Kong and Macao resident will have more space to live in and seek job opportunities while investors will have more chances to invest in. Located in Zhuhai city in Guangdong just across Macao, Hengqin covers an area of 106 sq km. Qianhai, neighbouring Hong Kong in Shenzhen, has expanded from 15 sq km to 120 sq km according to the plan.

A TCM lab in Hengqin [Photo\Nanfang Daily]

Secondly, there will be more thorough industrial chains to support the development of Hong Kong and Macao because Hengqin and Qianhai will involve more categories of industries based on the plans. Qianhai is developing mainly on service industry but the area will include advanced manufacturing, marine industry, convention and exhibition and shipping industry after expansion. As for Hengqin, it vows to develop Macao’s signature industries such as traditional Chinese medicine, high-end manufacturing. Macao has gained research achievements in these fields but the lack of land resources restricts development.

Last but not least, the plans will promote a new phase of Greater Bay Area cities integration. Capital and talent could flow more freely as the regulations and markets are more connected. The previous cooperation focused more on industries and social welfare. In the future, our cooperation will be more all-rounded and in-depth, especially in the fields of economy, social development, culture, social welfare and environmental ecology.

GDToday: How will the Hengqin, Qianhai plan benefit overseas investors?

Guo Wanda: Both plans highly emphasize the development of international business environment. A world-class business environment requires financial, administrative and legal services up to international standards with equal competition and transparent inspection. I see the Qianhai plan covers all these areas.

As for the Hengqin plan, it provides a wide range of tax incentives targeting companies and individuals involving in industries such as health, modern finance, hi-tech, exhibitions and trade, and culture and sports.

In addition, the Hengqin plan shows indications of easing market access which is very important to foreign investors. It also highlights better services for foreign professionals, cross-border financial services, cross-border data flow and international legal services. All these measures will benefit and bring more convenience to foreign investors in the future.

GDToday: Some western media questioned about the feasibility of the Greater Bay Area development plan while some doubt that the plans will weaken the unique role of Hong Kong. How do you think of these voices?

Guo Wanda: As the matter of fact, Hong Kong is in greater need of the Chinese mainland market under the “One Country, Two system”. Based on the Greater Bay Area plan, it stresses Hong Kong is to play its unique role, integrate to the national development and share benefits. For example, Hong Kong’s position as the international financial center?largely?hinged upon resources from Chinese mainland.

Hong Kong Exchanges and Clearing Limited (HKEX) data showed that mainland companies contributed more than 70 percent of market capitalization and 87.8 percent of trading volume. [photo\Xinhua]

In my opinion, it requires some fundamental factors to make everything happen. Firstly, Hong Kong needs to recognize this situation. Secondly, we need to guarantee factor mobility and regulatory convergence through reform and innovation so that we are more open to Hong Kong and easier market access. Thirdly, we need to highlight Hong Kong's role to connect other GBA cities with the overseas market and seek international cooperation.

Author: Natalie (intern)

Editor:Wing, Jasmine, Jerry

Graphic design: Mia