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Speakers:

Cong Liang, vice chairman of the National Development and Reform Commission (NDRC) and deputy director of the Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area

Xu Hongcai, vice minister of finance

Pan Gongsheng, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE)

Zou Zhiwu, vice minister of the General Administration of Customs of China (GACC)

Lin Keqing, member of the standing committee of the CPC Guangdong Provincial Committee and executive vice governor of the People's Government of Guangdong Province

Qin Weizhong, deputy secretary of the CPC Shenzhen Municipal Committee and mayor of the Shenzhen Municipal People's Government

John Lee Ka-chiu, chief secretary for administration of the Hong Kong Special Administrative Region (SAR) Government

Cheong Weng Chon, secretary for administration and justice of the Macao SAR Government

Chairperson:

Chen Wenjun, head of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Sept. 9, 2021

Chen Wenjun:

Ladies and gentlemen, good afternoon. Welcome to the press conference held by the State Council Information Office (SCIO). Recently, the Communist Party of China (CPC) Central Committee and the State Council issued a general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin and a plan for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. Today, we are holding this press conference to expound on these two plans, introduce the development of Hengqin and Qianhai, and answer your questions. Today's press conference will be held via video link with the main venue in Beijing and three sub-venues in Guangdong, Hong Kong and Macao SAR. Please forgive us if there's signal delay.

Next, I will introduce to you the speakers. Here in Beijing, we have Mr. Cong Liang, vice chairman of the National Development and Reform Commission (NDRC) and deputy director of the Office of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA); Mr. Xu Hongcai, vice minister of finance; Mr. Pan Gongsheng, deputy governor of the People's Bank of China (PBC) and administrator of the State Administration of Foreign Exchange (SAFE); and Mr. Zou Zhiwu, vice minister of the General Administration of Customs of China (GACC). In Guangdong, we have Mr. Lin Keqing, member of the standing committee of the CPC Guangdong Provincial Committee and executive vice governor of the People's Government of Guangdong Province; and Mr. Qin Weizhong, deputy secretary of the CPC Shenzhen Municipal Committee and mayor of the Shenzhen Municipal People's Government. In Hong Kong, we have Mr. John Lee Ka-chiu, chief secretary for administration of the Hong Kong Special Administrative Region (SAR) Government; and in Macao, we have Mr. Cheong Weng Chon, secretary for administration and justice of the Macao SAR Government.

Next, I will give the floor to Mr. Cong. 

Cong Liang:

Ladies and gentlemen, friends, good afternoon. Thank you for your attention and support to the GBA, especially Hengqin, Qianhai and other major cooperation platforms in Guangdong, Hong Kong and Macao. I would like to take this opportunity to express my sincere gratitude to friends from all walks of life who care about and support the construction of the GBA.

General Secretary Xi Jinping attaches great importance to the construction of major cooperation platforms in the GBA, and has personally promoted the establishment of the Hengqin and Qianhai cooperation zones. He has visited Hengqin four times and Qianhai three times, and delivered a series of important speeches and instructions, which pointed out the direction for the construction and development of the cooperation zones. General Secretary Xi Jinping emphasized on many occasions that the original goal of establishing the Hengqin new area was to create conditions for the diversified development of Macao's economy; and that Qianhai needs to rely on Hong Kong, serve the mainland, and open up to the world, further promote Guangdong-Hong Kong and Shenzhen-Hong Kong cooperation, and promote Hong Kong to better integrate into the development of the country to create a new pacesetter for reform and opening up.

In line with the decisions of the CPC Central Committee and the State Council, we have worked with Guangdong, Hong Kong, Macao and relevant departments to formulate a general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin and a plan for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. General Secretary Xi Jinping personally presided over the meetings to review and approve the plans for Hengqin and Qianhai. These two plans were released to the public a couple of days ago. The Hengqin plan focuses on the original goal of promoting the moderately diversified economic development of Macao. With a goal-oriented and problem-oriented approach, the plan aims to serve Macao and promote the integrated development of Hengqin and Macao. Generally speaking, it covers the following aspects: one theme, four major positions, three-phase goals, four major tasks and several supportive measures.

The "one theme" refers to promoting the moderately diversified economic development of Macao. This is the starting point and foundation of our work in Hengqin.

The "four major positions" refer to serving as a new platform to boost Macao's appropriate economic diversification, a new space that provides convenience for Macao residents' daily lives and employment, a new model to enrich the practice of "one country, two systems," as well as a new high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area.

The "three-phase goals" are related to 2024 and 2029, the beginning of two new terms of the Macao SAR government, and 2035, an important year for China's modernization. We have set development goals for these three years in terms of institutional mechanisms, industrial development and public services.

The "four major tasks" comprise of developing new industries that promote a moderately diversified economy in Macao, creating new space that facilitates the life and work of Macao's residents, building a new integrated system with Macao featuring a high level of opening up, and improving a new system of joint consultation, management and sharing between Guangdong and Macao.

The "several supportive measures" refer to enhancing the Party leadership and Party building in an all-round manner in the cooperation zones, enhancing legal guarantees, increasing the delegation of power, establishing and improving the risk management mechanism, and strengthening organization and implementation.

The Qianhai plan focuses on the two key points of "zone expansion" and "reform and opening up," and includes tasks in three areas.

The first is to expand the development space of the Qianhai cooperation zone. According to the plan, the total area of the zone will be expanded from 14.92 square kilometers to 120.56 square kilometers, and relevant supportive policies will cover the whole area following procedures, providing greater space for cooperation between Shenzhen and Hong Kong.

The second is to build an experimental platform for deepening reform and innovation in an all-round manner. According to the plan, major reform tasks will be piloted, and several tasks have been put forward including promoting the innovative development of the modern service industry, accelerating the reform and innovation of scientific and technological development mechanisms, creating a world-class business environment, and innovating the governance model of cooperation zones.

Third, a gateway and hub featuring high-level opening up will be built. The plan specifies that a higher-level open economy will be established and improved. The plan also puts forward effective measures for enhancing service trade liberalization with Hong Kong and Macao, promoting greater opening up of the financial sector, improving the openness of legal affairs, and improving high-level participation in global cooperation, among other measures.

Looking forward, we will act in accordance with the decisions and deployments made by the CPC Central Committee and the State Council, work with relevant parties to carefully organize the implementation efforts, and ensure good communication, coordination and services, so that all tasks of the two plans can be carried out. Thank you.

Chen Wenjun:

Thank you, Mr. Cong. Next, I'll give the floor to Mr. Lin Keqing.

Lin Keqing:

Ladies and gentlemen, friends from the media, the official release of the plans for the two cooperation zones marks a new stage of comprehensive construction and development in Hengqin and Qianhai. We have felt the great support for Guangdong and the high expectations for GBA from General Secretary Xi Jinping and the CPC Central Committee. We feel highly motivated and encouraged. 

The construction of the two cooperation zones has offered historic opportunities to Guangdong's reform and growth in the new development stage. The move is a strategic means for Guangdong to serve the "one country, two systems" policy, a strategic platform for Guangdong to further deepen reforms comprehensively, and a strategic support for Guangdong to serve the new development paradigm.

The CPC Guangdong Provincial Committee and the People's Government of Guangdong Province have taken on this major responsibility and historic mission, comprehensively and precisely grasped the strategic intention of General Secretary Xi Jinping and the CPC Central Committee, and have been working step by step with Hong Kong and Macao to turn the blueprints of two cooperation zones into reality. First, we have made intensified efforts to study, publicize, and implement the two plans. The Standing Committee of the CPC Guangdong Provincial Committee has met to communicate the two plans, a meeting of mobilization has been held on the provincial level, and the entire provincial Party committee has also met on the same matter. Second, we have made all-out efforts to improve relevant coordination mechanisms. Two leading groups for the construction of the two cooperation zones have been established, headed by Li Xi, secretary of the CPC Guangdong Provincial Committee. Ma Xingrui, governor of Guangdong province, serves as the first deputy head of the groups. Third, we are creating a system of policies, plans and laws for the construction of the two zones. We have formulated policy documents and advanced the formulation of a new round of overall plans for the two cooperation zones, drafted regulations for the Hengqin Cooperation Zone, and revised regulations for the Qianhai Cooperation Zone. Fourth, we have spared no efforts to facilitate the implementation of major tasks, programs, and industrial projects. Focusing on Hengqin's design function of promoting an appropriate level of economic diversity in Macao and Qianhai's role of serving the development of the mainland and opening up to the world based on its adjacency to Hong Kong, we have been working to implement all the tasks, programs and industrial projects concerning the two cooperation zones. Thank you.

Chen Wenjun:

Next, I'll give the floor to Mr. John Lee Ka-Chiu.

John Lee Ka-Chiu:

Ladies and gentlemen, friends from the media, good afternoon. The Hong Kong SAR government highly welcomes the plan released on Sept. 6 by the central government for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. The plan focuses on promoting higher-level opening up, facilitating the innovation of the modern service industry, and speeding up the building of a modern service industry in Qianhai that connects to Hong Kong and meets international standards. The Hong Kong SAR government firmly believes that we will be able to make good use of the advantages of the "one country, two systems" policy to promote the development of the modern service industry in Qianhai. At the same time, Hong Kong will give greater play to its advantages as an international center for finance, shipping and trade as well as a global aviation hub to provide more space for Hong Kong's professional services to develop.

With the support of the central government, the governments of the Hong Kong SAR and Shenzhen have been working to improve Qianhai's development and provide convenience for Hong Kong's professional services to develop in Qianhai. In recent years, law and architecture-related opening up policy measures have been introduced in Qianhai, which are widely welcomed by Hong Kong. So far, about 11,500 Hong Kong companies have registered in Qianhai, covering not only the just-mentioned professional services but also such modern services as finance, logistics, information, and science and technology.

In addition, Qianhai keeps attracting Hong Kong's young innovators and entrepreneurs to join the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub. The hub has incubated a lot of successful companies, becoming one of the many fruitful examples of Shenzhen-Hong Kong cooperation.

Released by the central government, the Qianhai plan has taken Shenzhen-Hong Kong cooperation onto a new level, allowing the two cities to better play their role of leading development as two core cities of the GBA. Hong Kong's business community and professional service providers have been actively making preparations to embrace the new opportunities brought about by the plan to Hong Kong people and companies. The government of the Hong Kong SAR will continue to strengthen cooperation with the governments of Guangdong province and Shenzhen city to promote the development of Qianhai and create broader development space. Thank you.

Chen Wenjun:

Thank you, Mr. John Lee Ka-Chiu. Next, I'll give the floor to Mr. Cheong Weng Chon. 

Cheong Weng Chon:

Thank you, Mr. Chen. The release of the general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin was an important move to implement President Xi Jinping's instructions. It is also a major action to support Macao in developing a moderately diversified economy and enrich the practices of the "one country, two systems" policy. The plan will inject new impetus, provide new space, and create new opportunities for Macao's long-term development. The Macao SAR government highly welcomes the introduction of the general plan, and would like to express our heartfelt thanks to the central government for its strong support.

The general plan contains new institutional designs and comes with greater reform efforts, broader opening up access, as well as high quality policies. According to the general plan, the in-depth cooperation zone will become a new platform for promoting a moderately diversified economy in Macao, a new space for Macao residents to work and live in, a new demonstrative practice of "one country, two systems", and a new pacesetter for the development of the GBA.

The government of the Macao Special Administrative Region (SAR), headed by Chief Executive Ho Iat Seng, will join hands with our citizens in seizing the historic opportunity to fully implement the general plan. Next, we will work on the following aspects:

First, we will fully study the plan and follow the policy orientation in building the cooperation zone to lay a foundation for the follow-up actions. Second, we will raise public awareness. We will work actively to introduce the plan to Macao residents so that they can have a better understanding of the importance of building the cooperation zone. Third, we will work closely with Guangdong province to leverage our respective advantages to build synergy for win-win cooperation. Fourth, we will ensure the good implementation of the plan. Efforts will be made to develop a list of duties and specify the duties for different departments so that all tasks will be fully completed. This will help us secure a better future for the Guangdong-Macao In-depth Cooperation Zone in Hengqin.

Chen Wenjun:

The floor is now open for questions. Please identify your news outlet before asking your questions.

CCTV:

The general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin made it clear that four major new industries will be supported in Macao. Why have the four been selected? What concrete policies will be rolled out to support their development? Thank you. 

Cong Liang:

Thank you for your questions, I will answer them. General Secretary Xi Jinping has made it clear many times that the original mission for building the Hengqin new area is to create a favorable environment for Macao's economic diversification. We kept this in mind when we formulated the plan for Hengqin and decided what major industries to develop in the zone. We have taken into consideration the development foundation of Hengqin, the industrial advantages of Macao, and the expectations from Macao residents, among others, in a holistic manner. After repeated discussions and careful comparisons, we proposed in the plan that four major industries should be promoted in the corporation zone, which are: scientific and technological research and development; high-end manufacturing; traditional Chinese medicine (TCM) and other signature businesses of Macao; industries related to culture, tourism, conventions, exhibitions, business and trade; and modern finance. Scientific and technological research and development will provide an important platform for innovation-driven development and is also what Macao expects to develop in the future. Industries related to culture, tourism, conventions, exhibitions, business and trade enjoy a solid foundation for development in Macao and have a competitive edge. Finance and TCM, though only taking a small share in Macao's economy at present, are widely recognized by the society of Macao as the major industries to develop in the future. Particularly, Chief Executive Ho Iat Seng has raised on many occasions the intention to develop TCM industry, and a series of measures have been taken recently to develop it. 

The foundation of Hengqin's industrial development remains weak. To accelerate the development of its major industries, we have identified a series of supportive policies in the plan for Hengqin. 

First, we will enhance our capacity for sci-tech innovation. Urgently-needed sci-tech infrastructure be built and major international science plans and projects will be implemented in the cooperation zone. Second, we will facilitate the flow of goods. We will ease the control on the "first line" (the boundary between Hengqin and Macao). There will be tax-free or bonded access for all goods and products except those listed as nonqualified by the law and regulations. We will exempt import tariffs for qualified goods produced by companies in the corporation zone when the goods enter the mainland through the "second line" (the boundary between Hengqin and the rest of the Chinese mainland). Third, we will improve the preferential policies concerning corporate income tax. Corporate income tax rates will be lowered to 15% for eligible companies in the zone. Fourth, we will attract talent from China and abroad. High-level professionals and urgently-needed professionals who work in the cooperation zone will be exempted from paying the portion of personal income tax that exceeds 15% of their taxable income. In addition, there are specified arrangements in terms of improving visa policies for foreign professionals and facilitating them to take part in the building of the zone. Fifth, we will explore new methods in cross-border financial management. More flexible financial policies will be implemented to facilitate cross-border direct investment, cross-border finance, and cross-border security investment. We will explore practices for free cross-border capital flows and push for capital account convertibility.

What needs to be pointed out is that there are many specific categories of the industries mentioned in the plan. Therefore, we should be selective when deciding what emerging industries to be developed in Hengqin, as the place is not large enough for all industries to settle in. There are things we will do and things we won't do. We are not looking for a so-called "business registration economy" or "headquarters economy." Instead, we will develop the real economy and create more jobs to build the zone into a popular destination for investment and talent.

Next, we will work with Guangdong province, Macao SAR and other related departments to formulate the Catalogue of Encouraged Industries in the cooperation zone and revise the Overall Development Plan of Hengqin. We will further specify the categories of industries, focus on advantageous industrial sectors, take multi-pronged approaches in terms of policy, human resources and financial support, scale up efforts to tackle challenges, and facilitate fast and large-scale industrial development, in a bid to promote Macao's economic diversification. Thank you. 

South China Morning Post:

According to the Qianhai plan issued on Sept. 6, the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will be expanded to 120 square kilometers from 14.92 square kilometers. What are the considerations on the expansion? There are worries in Hong Kong that there may be competitions between the newly developed industries in Qianhai and those industries already built in Hong Kong, and that it may even lead to a brain-drain from Hong Kong. How can we formulate the Qianhai-Hong Kong relationship to be both competitive and complementary? Thank you. 

Cong Liang:

Thank you for your question. The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area makes clear requirements to further promote the development of the Qianhai cooperation zone and rolls out preferential policies in the new expanded areas. In accordance with the decisions and deployments made by the CPC Central Committee and the State Council, we will manage the items concerning the expansion of Qianhai in a comprehensive approach. We support the expansion of Qianhai with two considerations.

On the one hand, the expansion of the Qianhai cooperation zone will nourish more development spaces for deepening reform and opening up in Qianhai. After over a decade of development and construction, area limitation has become a prominent problem restricting the reform and development of Qianhai. The expansion of Qianhai will promote institutional innovation and industrial upgrading in Qianhai, as well as the trial implementation of major reform policies. It's fair to say that the expansion of Qianhai acts as a means of deepening reform and opening up, and creates conditions for the further reform and opening up.

On the other hand, it will create more opportunities for Hong Kong. Strengthening cooperation between Shenzhen and Hong Kong is Qianhai's mission, as well as its special advantages. At present, numerous modern services enterprises from Hong Kong have entered the mainland market through Qianhai. However, due to the area limitation, it's hard to fully meet the development needs of these enterprises. After the expansion, the land available for industrial development will increase substantially in Qianhai. It will better leverage Hong Kong's advantages, upgrade cooperation between Shenzhen and Hong Kong, provide strong support for Hong Kong's economic development and push forward the integration of Hong Kong into national development.

Next, we will collaborate with the authorities of Guangdong province and Shenzhen city to concentrate on two aspects, in accordance with the decisions and arrangements made by the CPC Central Committee and the State Council. First, we will steadily accelerate the zone expansion and launch of preferential policies. We will promote the existing preferential policies in the fields of financial reform and innovation, and legal affairs cooperation to all newly added areas after the expansion, in a bid to provide compelling support for the deepened reforms and opening up in Qianhai. Second, we will make efforts in addressing institutional issues created by the proper decoupling between administrative districts and economic zone. The zone expansion involves two administrative districts of Baoan and Nanshan. We will work jointly with Guangdong province and Shenzhen city, to accelerate the process of proper decoupling between localization administration and economic management, fully leveraging the two institutional advantages and arousing the enthusiasm of all.

Thank you.

People's Daily:

Mr. Cong mentioned that General Secretary Xi Jinping has inspected Hengqin four times and repeatedly stressed the original inspiration of Hengqin New Area was to diversify Macao's economy. We would like to know, as of today, what achievements have been made in the construction of Hengqin, and what achievements have been made to diversify Macao's industries? Thank you. 

Lin Keqing:

Thank you for your questions. In 2009, General Secretary Xi Jinping, who was China's vice president at that time, raised the curtain of reform and opening-up in Hengqin. Over the past decades, Hengqin has been transformed from a boarder island into a pioneer area of China's reform and opening-up. The incredible developments have laid a solid foundation for the construction of the Guangdong-Macao in-depth cooperation zone.

First, economic strength has increased substantially with the rapid growth of key economic indicators, the constant improvement of regional gross domestic product and financial revenue, and the sound momentum of development of new industries and new forms of business. The new economic growth point has gained robust growth with increasingly powerful comprehensive strength and development potential.

Second, the infrastructure has been constantly improved. The new checkpoint at the Hengqin Port has adopted the customs-clearance mode known as "joint inspection and one-time release". The network of trunk roads featuring "five horizontal axes and three longitudinal axes" has basically taken shape. The artery of communications connected through Hengqin Bridge has opened to traffic.

Third, we have further promoted innovation in institutions and rolled out a total of 622 innovative measures, 4 of them were selected as the best practice cases in national free trade zones, and 11 of them were replicated and promoted to the rest of the country. A total of 537 types of government services in the Greater Bay Area can now be handled online, and 237 cross-border administrative approval items can be processed online as well.

Fourth, Hengqin's role in promoting an appropriately diversified economy in Macao has achieved initial success with a total of 4,578 Macao-funded enterprises registered there, and 314 Macao enterprises operating in this region. The Guangdong-Macao Cooperation Industrial Park in Hengqin has provided land for 25 projects with an agreed investment of 79.3 billion yuan. The Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macao has fostered 50 Macao pharmaceutical projects. Four state key laboratories in Macao have set up branches in Hengqin, incubating 613 innovation and startup projects from Macao. The unidirectional verification of professional qualifications has started. A total of 589 tour guides, 57 construction enterprises, 269 professionals in the field of architecture from Hong Kong and Macao, and 53 physicians and 7 community workers from Macao have started practicing in Hengqin.

Fifth, Macao residents' lives in Hengqin have become increasingly convenient. The Macao New Neighborhood Project will provide comfortable accommodation for around 10,000 Macao residents. A total of 7,756 Macao residents have applied for residence cards in Hengqin. Nearly 100,000 Macao residents seek medical advice in Hengqin each year. The quota of Macao-tagged vehicles allowed to enter Hengqin increased to 10,000 this year. The Hengqin Comprehensive Service Center of the General Union of Neighborhood Associations of Macao has provided service for nearly 70,000 mainland and Macao residents living in Hengqin.

At the same time, we should note that the development of Hengqin's real economy is still inadequate. The city's service role for Macao is yet to be sufficiently visible. It remains an arduous task to promote the diversity of Macao's industrial development. The construction of the cooperation zone is a glorious mission with heavy responsibilities. We will profoundly comprehend and precisely grasp the strategic intentions of General Secretary Xi Jinping and the Central Committee of the CPC, hold fast to the original intention to appropriately diversify Macao's economy, concentrate on "the four new" strategic positioning and "the four new" major tasks, and work collectively with Macao to turn the great blueprint depicted by General Secretary Xi Jinping and the Central Committee of the CPC into reality. Thank you. 

Macao Daily:

The general plan for building a Guangdong-Macao in-depth cooperation zone in Hengqin provides strong financial support and tax policies in the areas of corporate income tax, personal income tax and import tariffs. What were the main considerations in formulating these policies? And in what areas have innovations been made? Thank you.

Xu Hongcai:

Thank you for your questions. Hengqin is an important platform for promoting cooperation between Guangdong and Macao and boosting the moderately diversified development of Macao's economy. In accordance with the policy decisions and plans of the CPC Central Committee and the State Council, the Ministry of Finance has attached great importance to the development of Hengqin. We have implemented the special preferential tax policies in Hengqin and given positive financial support.

We have followed General Secretary Xi Jinping's important instructions that "the original goal of establishing the Hengqin New Area was to create conditions for the diversified development of Macao's economy" and adhered to the requirements of "gathering strength to overcome the difficulties from policy, manpower, financial and other aspects working in parallel." Under a unified and standardized fiscal system, we have focused on the diversified development goals and changing circumstances in Hengqin, further improved policies and measures, and strengthened support to promote in-depth cooperation between Guangdong and Macao. I will briefly introduce several types of taxes and measures.

In terms of corporate income tax, we will further improve policies and measures. All industries conducive to the moderately diversified development of Macao's economy are subject to the  preferential corporate income tax rate of 15%. The capital expenditure of businesses that meet the requisite criteria will also be permitted a one-time pre-tax deduction or accelerated depreciation and amortization in the current period of expenditure. .  Income from tourism, modern services, high technology, and new overseas direct investment will be exempted from corporate income tax. By these preferential policies, we will promote the moderately diversified development of Macao's economy.

In terms of personal income tax, the preferential efforts will be further increased. For domestic and overseas high-end professionals and employees in short supply in the cooperation zone, the part of their personal income tax burden exceeding 15% will be exempted. Macao residents working in the area will be exempted from paying the part of personal income tax amount exceeding that in Macao. In this way, we will attract more people and encourage Macao residents to find jobs and start businesses.

In terms of import and export taxes, line-division management will be further improved. During the "first-line" customs inspection, goods  will be granted tax-free access to the cooperation zone, except those identified as non-qualifying by the law. During the "second-line" customs inspection, goods entering the mainland from the cooperation zone will go through customs procedures in accordance with the relevant regulations on imported goods, and collect customs duties and import-link taxes. Goods produced in companies within the cooperation zone that do not contain imported materials, or contain imported materials but have a value-added exceeding 30% or higher, will be exempt from import tax when they enter the mainland." This way we will promote the integration of the industries of Guangdong and Macao. Goods entering Hengqin via the "first-line" will be granted tax-free access except those identified as non-qualifying by the law. Goods entering the mainland via the "second-line" will be regulated according to the relevant tax policies.  More convenient personnel exchanges will also be promoted between Hengqin and Macao.

In terms of financial support, we will further improve institutions and systems. The implementation of preferential tax policies will inevitably result in a reduction of fiscal income for both the central and local governments. However, in order to support the sustainability of the plan, such reductions will be covered by the central government itself. For the problem of local revenue reduction in the cooperation zone, the central government has specifically arranged comprehensive financial subsidies under a unified and standardized fiscal system. It needs to be stressed that the central government subsidy policies will be linked to such things as the cooperation zone's efforts to attract Macao enterprises, expand employment, increase the real economy's output value, and support key industries. We will strengthen the impetus of the cooperation zone in serving the diversified development of Macao's economy through institutional mechanisms.

The Ministry of Finance will closely focus on the strategic positioning of the cooperation zone, refine the content of our policies with relevant departments, and promote the implementation of policies, so as to allow policies to play an effective role and promote the accelerated development of the Guangdong-Macao in-depth cooperation zone in Hengqin. Thank you.

Xinhua:

The Macao government has made great efforts to promote the diversified development of Macao's economy since the current chief executive of Macao, Ho Iat Seng, took office in 2019. What has the Macao government done and what achievements have been made? Going forward, what are the key tasks of the Macao government relying on Hengqin in order to facilitate the diversified development of Macao's economy? Thank you.

Cheong Weng Chon:

Thank you. Since the beginning of the fifth term of the Macao SAR government, the most important priority for us has been promoting the moderately diversified development of Macao's economy. The main work includes the following aspects:

In terms of the Traditional Chinese Medicine (TCM) industry, we have drafted a new law on TCM production registration, which will be implemented from next year. The Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park in Hengqin has formed an industry cluster.

In terms of the modern financial industry, we will continue to improve relevant laws and regulations. Some draft laws including the Trust Act will be deliberated by China's legislature

In terms of cutting-edge technologies, we have restructured the Economic Bureau into the Economic and Technological Development Bureau, and formulated preferential tax policies for hi-tech and innovative enterprises. A number of funded research projects have yielded results.

As for conferences, exhibitions, culture, tourism and sports, the development of the conference and exhibition industry gradually tends to be specialized and market-oriented. The market model of tourism plus exhibitions is also being gradually enhanced. Large-scale sports events continue to be held, giving full play to their brand effect.

The Guangdong-Macao in-depth cooperation zone in Hengqin is creating a new platform and bringing new opportunities for Macao's moderately diversified economic development. This is mainly reflected in the following four areas:

First, it will boost Macao's branded industries such as TCM. We will promote applying "Supervised in Macao," "Manufactured in Macao," or "Designed in Macao" signs to TCM products manufactured in the cooperation zone after they are approved and registered in Macao. We will work to simplify the approval procedures for sales of Macao's external-use Chinese patent medicine in the Greater Bay Area.

Second, it will enhance technological research and development as well as high-end manufacturing industries, with the focus on integrated circuits, new materials, new energy, big data, and biomedicine, and boosting the microelectronics industry chain including custom chip designs. We will promote Macao University and other universities to set up demonstration bases of industry-university-research collaboration in the cooperation zone.

Third, it will promote culture, tourism, conferences, exhibitions and trade industries, with the focus being on tourism, conferences, exhibitions, and sports events. We will support Macao's industries in holding more branded and international trade fairs in Hengqin, and facilitate cross-border exchanges for exhibition organizers. We will build a trade market for high-end consumer goods, and help Macao's enterprises develop China-Portugal cross-border e-commerce businesses based on the cooperation zone.

Fourth, it will boost the modern financial industry, with the focus on bond market, wealth management and finance lease. We will encourage cross-border yuan settlement businesses, further reduce the application requirements for Macao's financial institutions to set up bank and insurance branches in Hengqin, and build a financial service platform for China and Portuguese-speaking countries. Thank you.

China Daily:

Promoting financial connectivity is an important part of achieving regulation compatibility and institutional connectivity in the Guangdong-Hong Kong-Macao Greater Bay Area. The financial industry is also the focus of the development of Hengqin and Qianhai. Could you introduce what efforts the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) have taken to support the development of the two regions? What effective measures have been rolled out this time? Thank you.

Pan Gongsheng:

Thanks for your questions. The PBOC and SAFE pay much attention to the development of the Guangdong-Hong Kong-Macao Greater Bay Area. Following the requirements of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area issued by the central authorities, we will promote financial opening-up and innovation in the Greater Bay Area, including Hengqin and Qianhai. 

In May 2020, the PBOC and other financial regulatory departments jointly unveiled the Financial Support Guideline for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, which focused on the key areas of financial reform and opening-up and deployed 26 financial opening-up and innovation initiatives in the Greater Bay Area, including Hengqin and Qianhai. Over the past year, the PBOC and the SAFE have continued to promote the implementation of various financial innovation measures in the principle of giving priority to people's livelihoods and finances while considering both long-term and immediate goals.

In terms of finance as related to people's livelihoods, a pilot campaign has been launched for Hong Kong and Macao residents to open mainland bank settlement accounts by remote means, and gradually expand the scope and scale of applicable organizations to facilitate the use of mobile electronic payments by Hong Kong and Macao residents in the mainland. We rolled out services benefiting people's livelihoods, such as direct payments of cross-border electronic bills and self-service queries of personal credit reports for Hong Kong and Macao residents. These financial reforms and further opening-up have made it more convenient for people to live in the Greater Bay Area.

In terms of market connectivity, we will continue to expand the channels for Investors from Hong Kong and Macao to invest in the mainland's capital and bond markets, and promote the implementation of cross-border Wealth Management Connect and southbound Bond Connect schemes, which will be launched in the next few days.

In terms of green financial cooperation, we have promoted local governments to issue green municipal bonds in Hong Kong and Macao and strengthen the cooperation between green bond evaluation and certification institutions in the Guangdong-Hong Kong-Macao Greater Bay Area to jointly set up a green financial alliance in the Greater Bay Area.

In addition, we also launched pilot campaigns of free trade accounts, the cross-border transfer of credit assets, foreign debt facilitation, cross-border capital pools and cross-border investment policies for private equity funds in the Greater Bay Area, including Hengqin and Qianhai.

Next, the PBOC and the SAFE will implement the policy decisions and plans of the CPC Central Committee and the State Council, and continue to give more financial support to the development of Hengqin and Qianhai.

First, in accordance with the two schemes issued by the central government and serving to central government's strategic position of Hengqin and Qianhai, the PBOC is coordinating with the financial regulatory departments of Hong Kong and Macao to formulate special financial policies to support reform and opening up in the two regions.

Second, according to Hengqin's strategic position of grounding itself to serve Macao in the integrated development of the two places, we designed open financial policies and plans for Hengqin, and explored building an electronic fence monitoring system. We will promote the greater opening up of financial services in Hengqin to Macao financial institutions to realize the full integration of financial services, boost the development of characteristic financial businesses in Macao, improve the width and depth of Macao's financial market, and enhance its financial radiating capacity to Portuguese-speaking countries.

Third, we will leverage the role of Qianhai to boost financial cooperation between Shenzhen and Hong Kong, so as to give full play to Hong Kong's role as an international financial center. We will focus on the free flow of cross-border capital, and strive for more open capital accounts to advance openness and connectivity of the financial services sector between the two cities. We will gradually establish a system of financial regulations that is in line with international practices, and improve our market-oriented, law-based and international financial environment, and usher in a more open financial sector.

Fourth, while opening our door wider to the world, we will also establish and improve a system for monitoring, preventing and defusing financial risks, in order to increase monitoring of abnormal cross-border capital flow. We will also strengthen Guangdong-Hong Kong-Macao cooperation on supervision of anti-money laundering, counter-terrorist financing and anti-tax evasion activities, and tighten Guangdong-Hong Kong-Macao cooperation on financial supervision, so as to ensure a more efficient fight against cross-border money laundering and illegal financial activities. Thank you. 

Southern Metropolis Daily:

General Secretary Xi Jinping has inspected Qianhai many times, calling for the area to leverage the advantages of Hong Kong, provide services to the mainland, and maintain an international vision. Could you please introduce the efforts Qianhai has made in promoting cooperation between Shenzhen and Hong Kong in recent years? What measures will be adopted to leverage Qianhai's role in advancing in-depth cooperation with Shenzhen and Hong Kong?

Chen Wenjun:

This question regards both Shenzhen and Hong Kong. I'd like to invite Mr. Qin to answer it first.

Qin Weizhong:

Thank you for your question. With the care of General Secretary Xi Jinping, Qianhai has been established as a major strategic platform of reform and opening up in the new era. Since the 18th CPC National Congress, General Secretary Xi Jinping has inspected Qianhai three times and made important instructions, giving full recognition to its development model and growth momentum. The Qianhai plan issued by the central authorities showcases the care of the General Secretary and the CPC Central Committee toward Qianhai's development. The CPC Shenzhen Municipal Committee and the Shenzhen municipal government, following the strategic instructions made by the General Secretary and the CPC Central Committee, have immediately relayed and implemented the Qianhai plan. With the support of relevant ministries, governments of Guangdong province and Hong Kong SAR, we have been striving to develop and open up Qianhai. The main achievements of Shenzhen-Hong Kong cooperation in recent years lie in three aspects:

First, a lot of modern service companies from Hong Kong have registered in Qianhai. A total of 11,500 Hong Kong-invested companies have registered in Qianhai, with the actual use of Hong Kong investment reaching $22.6 billion. Qianhai has become a home to China's first Hong Kong-invested holding consumer finance company, the first Hong Kong-invested holding public offering fund company, as well as the first joint venture securities company.

Second, the institutional innovation has made a series of achievements. A total of 645 achievements have been made thanks to institutional innovation, 65 of which have been adopted nationwide.

Third, a series of favorable measures have been put in place to help Hong Kong residents in terms of their living and employment. Currently, talents in more than 20 sectors, such as tax accountants and registered architects, are able to conveniently work in Qianhai. The Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub and other similar organizations have fostered 245 startup venture teams from Hong Kong. As such, Qianhai has become one of the regions with the highest correlation and closest cooperation between the mainland and Hong Kong. A high degree of consensus was achieved at the Shenzhen-Hong Kong cooperation meeting held on Sept. 6. Going forward, we will comprehensively implement the requirements of the Qianhai plan made by the central authorities, and remain true to the original aspiration of serving Hong Kong and Macao. We will adhere to the requirements of leveraging the advantages of Hong Kong, providing services to the mainland, and maintaining an international vision. We will strive to promote Qianhai Shenzhen-Hong Kong cooperation upto a new level, and support Hong Kong to further integrate into the national development.  

First, we will make good use of the "new space" brought about by the expansion of the cooperation zone. We will ensure high quality in the new round of general planning and the territorial space planning for the development of Qianhai, and ensure that one third of the newly vacated land designated for industrial purposes will be used by Hong Kong capital and Hong Kong-invested companies.

Second, we will take advantage of the "new dividends" brought about by the new policies. We will work toward making policies in terms of industries, finance and laws accessible in the whole area, and fully leverage the huge opportunities presented in expanding the area.  

Third, we will explore "new fronts" of Shenzhen-Hong Kong cooperation, such as modern finance, technology services, exhibition economy, marine economy and professional services.

Fourth, we will foster "new advantages" in the business environment. We will accelerate the adoption of regulations to protect investors in the Qianhai cooperation zone. We will work with Hong Kong to build an international legal services center and an international commercial dispute resolution center. We will also build the cooperation zone into a pilot platform for comprehensively deepening reform and innovation and a gateway hub for high-level opening up.

I'd also like to take this opportunity to invite all of you to visit Qianhai. Thank you.

John Lee Ka-chiu:

Thank you for your question. The cooperation between Hong Kong and Shenzhen has been a unique story during China's reform and opening up over the past 40-plus years. Such practice of giving full play to Hong Kong's advantages and contributing to the country's needs has been a win-win and mutually beneficial relationship. The release of the Qianhai plan will ensure a higher level of cooperation between the two cities, and leverage their roles as "double engines" in promoting development of the Guangdong-Hong Kong-Macao Greater Bay Area.

With the support of the central authorities, the local governments of Hong Kong and Shenzhen have been making great efforts to improve the development of the Qianhai area and facilitate Hong Kong's professional service providers entering Qianhai. In recent years, policies and measures have been put in place to further open up the professional services sector, which is highly welcomed by industry in Hong Kong. For example, in terms of legal services, Qianhai is the first place to establish joint venture law firm run by law firms from the Chinese mainland and Hong Kong. This pilot experience has been adopted across the Chinese mainland. Qianhai took the lead to use Hong Kong's investment and laws, allowing those Hong Kong-invested companies to take Hong Kong's laws as those applicable to civil and commercial contracts. Moreover, eligible Hong Kong lawyers and barristers, who have obtained their practicing certificates after examination, are able to engage in part of the legal services in the nine mainland cities in the Greater Bay Area. In terms of architecture and related engineering professional services, eligible Hong Kong consultant companies, contractors and other professional personnel, are able to provide services in Qianhai after registering their certificates. Corresponding to the related certificates on the Chinese mainland, their services can cover five areas: architecture, engineering, measurement, planning and landscape architecture. 

The Hong Kong SAR government will deliberate with the relevant central government departments on how to utilize the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) to immediately implement Qianhai plan's measures on further opening service trade and help Hong Kong's professional service sector make deployments and arrangements as soon as possible. The Hong Kong SAR government will also work with relevant industries to provide suggestions for and cooperate with the Qianhai cooperation zone in such fields as finance, innovative technology, law and business environment after its expansion.

At the same time, the Hong Kong SAR government will strengthen cooperation with the Guangdong and Shenzhen governments to further support Hong Kong youths in their startups based on the sound foundation of projects such as the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub and the Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area. Thank you.

Phoenix TV:

The modern service industry, and mainly the financial sector, is a competitive industry in Hong Kong and a sector jointly developed by Shenzhen and Hong Kong in Qianhai. What are your considerations for better playing Hong Kong's role as an international financial center and enhancing its cooperation with Qianhai to provide higher-quality financial services for the Guangdong-Hong Kong-Macao Greater Bay Area, or even for the whole country? Thank you.

Chen Wenjun:

Your question is related to the PBC and Hong Kong SAR. As such, I'll invite Mr. John Lee Ka-chiu answer this question first.

John Lee Ka-chiu: 

Thank you for your question. The Qianhai plan stressed that it will further open the financial sector, including carrying out trials in areas such as interconnectivity with Hong Kong's financial markets, cross-border utilization of RMB, and foreign-exchange management facilitation. It also proposed launching a pilot account system that allows settlement in RMB and foreign currencies in the same bank account, so as to provide quality, safe and highly efficient services for market entities. In addition, the plan proposed deepening green finance cooperation between Guangdong, Hong Kong and Macao, and exploring the establishment of unified green finance standards, so as to serve mainland enterprises' fundraising for green projects in Hong Kong and Macao. 

In fact, the Outline of the 14th Five-Year Plan (2021-2025) pledged to support Hong Kong in enhancing its status as an international financial center, to strengthen its functions as a global offshore RMB business hub and an international center for asset management and risk management, and to deepen and expand the interconnectivity between the mainland and Hong Kong's financial markets. Shenzhen's Outline of the 14th Five-Year Plan (2021-2025) also specified that the city will establish a global financial innovation center, including building a global center for innovation capital and a global center for innovation and technology.

Hong Kong and Shenzhen are the hubs and driving engines of the Guangdong-Hong Kong-Macao Greater Bay Area. Under the leadership of the chief executive of the Hong Kong SAR and the secretary of the CPC Shenzhen Municipal Committee, we set up special working groups with Shenzhen municipal government to promote financial connectivity and cooperation between the two cities, thus contributing to the high-quality development of the Greater Bay Area and deepening the reform of the country's financial market.

Financial cooperation between Shenzhen and Hong Kong remains close, and a number of fruitful outcomes were yielded. For example, in terms of interconnectivity, the Shenzhen-Hong Kong Stock Connect has run smoothly and expanded continuously since its launch in 2016. By the end of this July, the cumulative turnover of northbound transactions exceeded 28 trillion yuan, and the cumulative turnover of southbound transactions exceeded HK$8.3 trillion. Since the end of last December, the scope of southbound stocks eligible in the Shenzhen-Hong Kong Stock Connect has been expanded to biotech companies that go public on the Hong Kong stock market under new listing rules, but haven't yet had a record of revenue or profit.

The Hong Kong SAR government will continue to deepen cooperation in the financial services sector with the government of Shenzhen, contributing to the Greater Bay Area and the country as a whole. Thank you.

Hong Kong Bauhinia Magazine:

The general plan for building the Guangdong-Macao In-depth Cooperation Zone in Hengqin specified that the cooperation zone is the area under customs supervision between Hengqin island's "first-line" and "second-line." The ports between Hengqin and Macao shall be subject to the "first-line" administration, and the ports between Hengqin and the rest parts of the mainland shall be subject to the "second-line" administration. What was your consideration in setting up such a new system? What role will it play? Thank you.

Zou Zhiwu:

Thank you for your questions.

The GACC has earnestly implemented General Secretary Xi Jinping's important instructions on Hengqin's opening-up and development, carried out the decisions and plans of the CPC Central Committee and the State Council, and supported the building of the Guangdong-Macao In-depth Cooperation Zone in Hengqin. This general plan specified that the cooperation zone is the area under customs supervision between Hengqin island's "first-line" and "second-line." This posed a new requirement for the customs work.

In fact, in 2011, the "The Reply of the State Council on Relevant Policies of Development of Hengqin" proposed that "the port between Hengqin and Macao should be set as a 'first-line' management, and the port between Hengqin and the mainland should be set as a 'second-line' management." This time the general plan has further clarified the two-line management system, mainly for the continuous implementation of filing management for goods entering and leaving through the first line, and further simplifying declaration procedures and factors. Except for goods and articles that are not tax-exempted or bonded as specified by national laws and administrative regulations, other goods and articles may be tax-exempted or bonded into the cooperation zone.

The implementation of two-line management can give better play to the unique policy and institutional advantages of the cooperation zone. And this is conducive to building a new, sophisticated system to ensure integrated openness with Macao. Likewise, this promotes rational and diverse economic development in Macao, fosters an industrial connection between Hengqin and Macao, and allows for the flow of personnel between Hengqin and Macao, in particular, for Macao residents to enter and exit the cooperation zone conveniently, so that it can truly become a new space where Macao residents live and find employment – all while becoming a new model of "one country, two systems", as well as a high ground for building the Guangdong-Hong Kong-Macao Greater Bay Area.

As you all know, Guangdong and Macao belong to different customs areas, and so too do they have different tariff levels, prohibition and control systems, inspection and quarantine, as well as other laws and regulations. This requires the customs and relevant administrative departments of the two localities to find a set of common or mutually recognized rules and standards for the cooperation zone. It also requires customs to support and service the construction of the cooperation zone, facilitating "hard connectivity" between infrastructures and "soft connectivity" of regulatory rules and standards.

Next, the General Administration of Customs and relevant departments of the State Council will take into account the opinions of all sectors of the Macao SAR and relevant parties of Guangdong province, with an eye towards strengthening the connection and coordination with the Macao Customs Service and relevant administrative departments, intensifying efforts to innovate the regulatory system, tailoring a regulatory system and matching supportive measures to enhance regulation while optimizing services in the cooperation zone, earnestly implementing them, and striving to properly play customs' role in building the cooperation zone. Thanks.

Chen Wenjun:

The previous questions raised by Phoenix TV involve two aspects. Mr. John Lee Ka-chiu has replied, and we now invite Mr. Pan Gongsheng to add some more details.

Pan Gongsheng:

Thank you. Mr. John Lee Ka-chiu from the Hong Kong SAR has already given good answers to the questions raised by the reporter. Let me add something. As you all know, Hong Kong is a major international financial center. It has a highly open business environment, an in-depth financial market system, a complete financial infrastructure and an international financial supervision system. It has been the world's freest economy for 25 consecutive years. It is the world's largest offshore renminbi (RMB) market, the fifth-largest stock market and foreign exchange trading center, the third-largest bond market in Asia, and the largest fund management and private wealth management center in Asia. Since 2019, international funds have continued to flow into Hong Kong's financial market, the exchange rate of the Hong Kong dollar has remained stable, the scale of IPOs ranks among the top in the world, and Hong Kong's status as an international financial center has been continuously consolidated.

The People's Bank of China will follow the "one country, two systems" principle and the unified deployment of the CPC Central Committee and the State Council, to thoroughly implement the national 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. Qianhai will be coordinated to further experiment and showcase financial openness and boost Hong Kong's role as an international financial center, in order to provide high-quality financial services for the Greater Bay Area and the whole country.

First, we will leverage Hong Kong's status as an international financial center to promote the internationalization of the RMB. As an international financial center, Hong Kong has a large number of global financial institutions. At present, Hong Kong's RMB fund pool exceeds 800 billion yuan, which provides important support for the promotion of RMB internationalization. In the future, the cross-border RMB business innovation pilot program will be trialed in Qianhai, which will help expand the depth and breadth of Hong Kong's offshore RMB business and consolidate Hong Kong's position as the world's largest offshore RMB market.

Second, we will accelerate the interconnection of the financial markets of the mainland and Hong Kong. The Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect established between the mainland and Hong Kong provide convenient and efficient channels for foreign investors to invest in the mainland's capital and bond markets. At present, more than 70percent of mainland stocks held by foreign investors are purchased through the Shanghai- and Shenzhen-Hong Kong Stock Connects. In the future, the Qianhai cooperation zone can continue to play a pioneering role in connecting the financial markets of the Chinese mainland and Hong Kong.

Third, we will promote cooperation between the mainland and Hong Kong in green finance, technology finance, financial technology, financial innovation, and financial supervision.

Fourth, we will treat Qianhai as a test field for implementing the negative list of the financial industry and connecting with international standards. We will gradually build a financial rules system that is in line with international standards, promote the integrated development of financial rules, and lead China's financial opening up to the outside world. Thanks.

Chen Wenjun:

Last question, please. 

Shenzhen TV:

General Secretary Xi Jinping had stressed that it is necessary to make full use of the major cooperation platforms between Guangdong, Hong Kong and Macao to attract more young people from Hong Kong and Macao to study, work and live in the mainland, while promoting extensive communication, comprehensive exchanges, and in-depth integration among young people from the three areas, and strengthening their solidarity with the whole nation. What have the Hengqin and Qianhai cooperation zones done to promote the entrepreneurship and employment of Hong Kong and Macao youths? And how will the implementation of plans benefit more Hong Kong and Macao youths in the future? Thank you.

Chen Wenjun:

Your questions may concern Guangdong, Hong Kong and Macao. First, we invite Mr. Cheong Weng Chon to answer.

Cheong Weng Chon:

Thank you, Mr. Chen. Hengqin is Macao's starting point for its participation in the development of the Greater Bay Area and its integration into national development, according to the policy address for the fiscal year 2020 of the Macao SAR government. This new area provides the most convenient and suitable space for Macao's diverse economic development, as outlined in the policy address. In recent years, the Macao SAR government has supported young entrepreneurs looking to work or start a business in Hengqin. As of this May, incubators including Macao-Hengqin Youth Entrepreneurship Valley (Inno Valley HQ) and Hengqin International Science and Technology Innovation Center have incubated 537 projects from Macao, and another 121 are currently under incubation. A project to support youth entrepreneurship and innovation, as well as platforms for advisory services and experience sharing, have facilitated cooperation between young people from Macao and the Greater Bay Area. A strategic position of the Guangdong-Macao in-depth cooperation zone in Hengqin is a new space that makes Macao residents' life and employment more convenient. The Macao SAR government is finding more ways for young people in Macao to work, start a business and live in the cooperation zone. We will continue supporting young people with innovative visions and those who want to work or start a business in the zone.

According to the general plan of building the Guangdong-Macao in-depth cooperation zone in Hengqin, four major industries will be prioritized including sci-tech research and development and high-end manufacturing to help Macao foster a more diverse industrial landscape. This will also offer Macao's young people more diversified employment opportunities and broader space for their development in Hengqin. Thank you.

Chen Wenjun:

Mr. John Lee Ka-chiu, please.

John Lee Ka-chiu:

Thank you. The Hong Kong SAR government welcomes the plan for comprehensively deepening the reform and opening up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. In particular, we welcome the policy that makes it more convenient for young people from Hong Kong and Macao to study, work, stay, live, and start a business in the cooperation zone.

Young people represent the future, are a source of hope and stand as a pillar of society. They also drive long-term social and economic development. The Hong Kong SAR government pays close attention to the vitality of youth communities and has launched projects to facilitate exchanges, study, employment, and entrepreneurship for young people. We encourage them to broaden their horizons, understand our country's development through hands-on experience, and seize opportunities.

In terms of entrepreneurship, innovation and business startups are booming on the mainland this year, bringing numerous opportunities for Hong Kong's young people. Many Hong Kong companies have developed their businesses in Qianhai. Increasingly improved supportive measures have attracted a number of young people from Hong Kong to start businesses at the Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub (the Qianhai "dream works") and other bases for innovation and entrepreneurship. These bases have incubated many successful enterprises and are quite popular among Hong Kong's young business leaders. The Hong Kong SAR government has launched the Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area. It aims to offer entrepreneurial support and incubation services, as well as start-up capital to young Hong Kong residents who intend to start a business in Hong Kong and in mainland cities across the Greater Bay Area.  

In terms of employment, with support from the Guangdong provincial government, the Hong Kong SAR government launched the Greater Bay Area Youth Employment Scheme early this year to encourage and support Hong Kong university graduates to seize opportunities for career development in mainland cities in the Greater Bay Area (including Qianhai). The scheme has been met with an enthusiastic response, collecting nearly 3,500 job vacancies and more than 20,000 applications. Over 800 graduates have found jobs through the scheme, of which 530 are working in Shenzhen. The Hong Kong SAR government will proactively request feedback from both employers and employees to ensure the scheme achieves its intended results.

In terms of exchanges and internships, the Hong Kong SAR government will continue to optimize and expand various programs for both of these fields, in order to help young people better understand the national condition, as well as the job market, workplace culture, living environment and development opportunities on the mainland.

Looking forward, Qianhai will continue offering Hong Kong's younger generation excellent opportunities, and the Hong Kong SAR government will consistently improve relevant programs to help them better integrate into the country's overall development. Thank you.

Chen Wenjun:

Last but not least, Mr. Lin Keqing will give his answer.

Lin Keqing:

In recent years, we have been supporting young people across Hong Kong and Macao to work or start a business in Guangdong province through key platforms such as Hengqin and Qianhai. I will focus on three aspects in this regard.

First, we established and constructed platforms such as the "1+12+N" bases, which help young people from Hong Kong and Macao with innovation and entrepreneurship. For example, platforms such as the Qianhai "dream works" and Inno Valley HQ have fostered ideal hard environment and soft environment, which can provide Hong Kong and Macao's young people with a wide range of services, including exchanges, training, incubation, display and match-making.

Second, we implemented a series of policies to help Hong Kong and Macao's young people thrive. The policies include recruiting Hong Kong and Macao residents to government units and public institutions, mutually recognizing professional qualifications, coordinating social security schemes, and putting in place preferential individual income tax rates. All these will offer Hong Kong and Macao's young people more employment opportunities in Guangdong. In addition, we implemented policies to ensure they have equitable access to entrepreneurship and employment opportunities. We introduced specialized measures to support Hong Kong and Macao's young people as they navigate entrepreneurship, employment, and life in the cooperation zones. Those measures include "Measures to Support Hong Kong and Macao Young People with their Development in Qianhai" and "Interim Measures to Further Support Macao Young People with Innovation and Entrepreneurship in Hengqin."

Third, we promoted exchanges to give Hong Kong and Macao's young people a better understanding of the mainland. We organized activities such as the Guangdong-Hong Kong-Macao Greater Bay Area Internship Program for Macao Youths and the Career and Internship Fair for University Students in Guangdong-Hong Kong-Macao Greater Bay Area. Likewise, we held start-up competitions such as "Community Entrepreneurs Cup" and "Makers in Guangdong" to attract more young people from Hong Kong and Macao, and encourage them to pursue programs in Guangdong. In addition, we organized publicity activities, entrepreneurship training, salons and job fairs to inspire Hong Kong and Macao's young people to participate in the development of the Greater Bay Area and find their place in the country's overall development.

Next, we will implement decisions and plans made by General Secretary Xi Jinping and the CPC Central Committee on developing the two cooperation zones, further improve policy systems and enhance policy coordination. We will upgrade platforms to attract resources and optimize services to increase efficiency. Through these measures, we aim to achieve more high-quality outcomes in helping Hong Kong and Macao's young people with their entrepreneurship and employment. Thank you.

Chen Wenjun:

Thank you, all the speakers. Thank you, friends from the media. That's all for today's press conference.

Translated and edited by Wang Yiming, Wang Qian, Zhu Bochen, Yuan Fang, Cui Can, Chen Xia, Qin Qi, Huang Shan, Dong Qingpei, Ma Yujia, Duan Yaying, Zhang Rui, Gong Yingchun, Wang Yanfang, Zhang Tingting, Liu Sitong, Zhang Liying, Li Xiao, David Ball, Jay Birbeck, Pittock Drew Anthony. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.