China wants Shenzhen to become its next business mega-hub

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.

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, alongside manufacturing innovation centers for sectors including advanced communication devices and medical instruments.

Shenzhen City will be positioned as "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 intends to 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.

Businessweek