(Yicai Global) March 29 -- Shenzhen municipal government is encouraging younger people to start up in business in the Greater Bay Area.

According to a new local policy, people from Hong Kong and Macao will be eligible for one-time government funding of up to CNY2 million (USD296, 872) if they open companies in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, also known as Qianhai New District, and get listed.

This is one of the incentives that Shenzhen's government proposed in a recently released document that covers entrepreneurship, employment and internships in Qianhai for people from the two special administrative regions. Many of the measures are funded.

The funds are for Hong Kong and Macao residents aged between 18 and 45 and for those in the Chinese mainland who have graduated from universities in the SARs, the policy document shows. 

Companies started by entrepreneurs from Hong Kong and Macao will be eligible for the one-off reward, if they succeed in listing in Hong Kong, Shanghai, Shenzhen, London, Tokyo, New York and elsewhere.

Financial Boost

"The bonus of CNY2 million means a lot to firms that plan to go public because they need the money before the initial public offerings," Guo Weiqiang, the co-founder of R-Guardian Shenzhen Technology in Qianhai, told Yicai Global.

"It can be seen as a subsidy," said Guo, who is an entrepreneur from Hong Kong and was born in the 1990s. "The incentive does not set limitations on the location of the listing. You can get the money irrespective. That is very good."

Guo's company has grown rapidly since it moved to Qianhai more than two years ago. It secured a second round of financing last year and plans to go for a third at the end of this year.

"These new policies by Shenzhen offer strong support, both in terms of the qualifications of high-tech firms and bank loans, that are very comprehensive and cover different development stages of various companies," Guo added.

"This may attract many firms that already boast business strength to move to Qianhai," he said. "For those that have completed their angel-round fundraising, they will know when to apply for the loans and when to accomplish the necessary qualifications for the high-tech companies. So these policies will be very attractive to them. A great number of Hong Kong startups may be attracted to Shenzhen because of these policies."

Hong Kong is known for its front-end basic research in science and technology innovation, while Shenzhen's capability in industrial transformation at the rear end also draws public attention. The Greater Bay Area's science and tech innovation will hopefully take a further step ahead in future after the two regions' resources are combined, Zhang Yuge, the director of the research center for Hong Kong and Macao's Economies and Societies at China Development Institute, told Yicai Global. 

Wide-Ranging Incentives

The document also proposed other preferential policies that cover various aspects related to the target group from Hong Kong and Macao, including travel, internship, employment, entrepreneurship, and guarantees for their stay in addition to granting subsidies for the startups to succeed in going public. This can be regarded as a 'big gift package' from the local government.

For instance, the document says it supports universities, scientific institutes in Hong Kong and Macao and firms established by local youths to build key laboratories and other innovation vehicles, and to form national, provincial and municipal ones by giving relevant parties as much as CNY10 million.

The policy also proposed to offer funds to cover the costs in the initial stages. The startups established by young local residents that settle in Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneur Hub and other local innovative incubation vehicles can enjoy subsidies in terms of office rents and fees for property management.

Issues like research and development, innovation, entrepreneurship to guarantees for a living -- the kind of things that young residents in Hong Kong and Macao would take into consideration -- was covered by the policies, Zhang said.

"This is a one-stop solution offered by the government with real money," he added. These will encourage companies from Hong Kong and Macao to start up in the Greater Bay Area and look forward to state help in the early stages.

"The implementation of these incentives will promote the free flow of elements and resources in Shenzhen and Hong Kong, thus deepening the integration of regional science and technology innovation," Zhang said.