Editorial | Hong Kong’s cooperation with Qianhai offers businesses best of both worlds

Among the highlights of the new drive is a “dual headquarters” initiative that enables Hong Kong-based unicorns to benefit from the free flow of capital, data and resources across the two places. The “SZ-HK Nexus” dual-headquarters hub encompasses 29 villa-style office buildings for enterprises from Hong Kong and mainland China to set up operations in Qianhai. Only companies of a certain scale – those generating at least 1 billion yuan (US$144.8 million) in annual revenue and aligning with national development strategies, preferably unicorn start-ups – would be eligible. Seven firms have been selected so far, according to the authority.

Thanks to its location and historical ties, Hong Kong has long been the springboard for businesses seeking to tap the lucrative mainland market. The dual headquarters initiative has additional appeal in that it enables promising companies to benefit from both the Hong Kong and mainland systems without being hindered by the existing restrictions between the two jurisdictions. Companies can also reduce costs by relocating part of their operations to Qianhai and expand into the Greater Bay Area for new opportunities domestically and internationally.

The move does not seek to make Qianhai a competitor and draw away Hong Kong’s strengths. It is a strategic key partnership that bolsters Hong Kong’s status as a global centre for finance, business and talent. There are already 12,000 residents from the city and 11,000 Hong Kong-funded companies in Qianhai. A dedicated service centre for Hong Kong residents and companies is expected to be established to provide one-stop support.

The latest action plan comes as the city is gearing up for the next five-year national development plan. It also complements the implementation of the Greater Bay Area development strategy and sets the stage for further collaboration in the coming years.