Opinion | Qianhai pioneers gamble they will have the last laugh
HK firms have been wary on rushing into the zone, but the brave ones are at least showing some of the city's old spirit in their blue sky quest
Hong Kong-based Pacific World Asset Management is barely known in the financial world. Yet it has spent almost a year and more than US$1 million to register itself in the Qianhai economic zone.
That's unusual. Despite all the hype, Hong Kong businesses have put little money into the future "Manhattan of southern China".
In the past 12 months, the number of firms registered in the zone has increased from 700 to 1,679. They have poured in 192 billion yuan (HK$242 billion) as capital, an average of 120 million yuan each. However, less than 5 per cent are Hong Kong entities, according to regulatory sources.
Last month, no Hong Kong developer took part in the zone's third land auction. Firms pointed to a requirement that the winning bidder commit to setting up a regional headquarters there within a year. China Resources secured the site with 10.4 billion yuan.
What does Pacific World see in the zone that the big boys in Hong Kong don't? Your columnist asked its controlling shareholder and legal representative Simon Cheung.
"There is no clear policy. The cost of setting up is high. There is no immediate profit. These are all genuine concerns," Cheung said. "Yet experience has shown us that by the time the policy is clear to most people, the door will be shut."