ExclusiveQianhai bypassed as firms head for Shanghai Free-trade Zone
New free-trade zone attracts ventures planned for Shenzhen base, raising concern in HK
Qianhai first, Hong Kong next?
While Hong Kong officials have been concerned about the impact of Shanghai's free-trade zone, it seems it is already stealing business from Qianhai.
Financial industry sources said several domestic and global firms that had originally planned to set up shop in Qianhai - the smaller special economic zone only an hour's drive from Hong Kong - were seriously considering the 29 square kilometre free-trade zone in Shanghai instead. China Taiping Life Insurance, one of the mainland's biggest and oldest life insurers, and China Petroleum & Chemical Corp (Sinopec) are among the firms rethinking their options.
The sources, who asked not to be named, said the two companies originally planned to set up a pension fund management joint venture in Qianhai but later decided to base it in the new Shanghai zone, which was officially launched on Sunday.
"The Shanghai free-trade zone has definitely attracted more attention than Qianhai from the financial industry mainly because people believe Shanghai gets far more high-level support and wider policy coverage than Qianhai," said one of the sources.
"The impact of Shanghai will be felt in the whole of China or even the rest of the world, but Qianhai's impact will be limited to Hong Kong-related businesses."