Number of Registered Companies Increased for the First Half of this Year
The number of newly registered companies at the Qianhai Free Trade Zone have surged during the first half of this year that required services in the free trade zone has increased in order to keep pace. Around 51,583 companies registered in the Qianhai Free Trade Zone with registered funds of up to 2.3 trillion yuan. during the past six months the number of newly registered companies in Qianhai accounted for 80 percent of the total number of the registered companies in the Guangdong free trade zone.
These companies are planning to seize business opportunities that are craven by favorable policies in the free trade zone. According to Guo Wanda the vice president of the Shenzhen Development Research Institute that the added policies are there to promote Internet finance and startups that were started in July which led to the surge of registered companies. These companies have high expectations for the free trade zone but it doesn’t mean that the companies can run the businesses successfully in Qianhai since the market will always have the final say.
A consulting company at the free trade zone said that 200 companies a re being registered everyday in Qianhai as some of these companies believe that the can benefit from favorable policies when they are registered in the free trade zone before any policy is put into place. As for the funding policies for Hong Kong companies will also be in place, financial support for other companies can be introduced which some companies are looking for. Aside from financial institutions and professional service providers most of the 40,000 registered companies have yet to settle in Qianhai.
A financial leasing industry insider said that dozens out of 500 registered financial leasing companies are operating in Qianhai. The vice president for the institute for free trade zone research at the Sun Yet sen University Lin Jiang stated that the zone must make sure that it provides enough services for new companies if they hope to attract more investment. Office space rentals prices in the Nanshan Free Trade Zone drove by growing demand of registered companies in the area with rent nearly at 100 yuan per square meter the same with the rent charged in Guangzhou downtown area.
The government in Nanshan is allowing companies to register using a virtual address as the demand for high end office buildings already exceed the supply in the free trade zone. But now there are not enough office buildings in the area and companies are facing the problem of looking for an address before the can register in the area. To solve this most companies register at the Hengqin Free Trade Zone but doesn’t set up offices in the area due to the shortage of offices as well.