The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone is set to maintain its leading role in deepening cooperation between businesses in Shenzhen and Hong Kong even as other pilot zones have been established in the region, according to experts.

 “Qianhai has initiated more than 800 pilot rules and regulations since 2010, more than 100 of which have already been extended to other parts of the Guangdong-Hong Kong-Macao Greater Bay Area, or even the country,” said Gary Wong Chi-him, chief Hong Kong and Macao liaison expert of Qianhai Authority.

Wong said the pilot rule of allowing Hong Kong-invested enterprises in Qianhai to adopt Hong Kong law and choose the special administrative region as the site for arbitration was recently promoted in other cities in the Greater Bay Area.

He said he is confident that Qianhai will continue to lead in fostering more prospective alignment measures before their adoption by other places.

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Wong said other pilot zones in the region, including Nansha district in Guangzhou and the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone in Shenzhen, had their own advantages but Qianhai supported the most comprehensive number of industries.

He explained that Qianhai supports various industries, such as international finance, trade, shipping, logistics, technology and even art and culture. “And not only for businesses, Qianhai is also a test zone for creating integrated cross-border living, so we have many new practices in education and medical care sectors.”

Besides being all-inclusive, Qianhai is also more internationalized, said Yu Lingqu, deputy director of the Department of Financial Development and State-owned Assets and State-owned Enterprise Research at China Development Institute, a Shenzhen-based think tank.

“Qianhai can make greater efforts to attract global high-end elements. In addition to aligning with the highest international standards, Qianhai can facilitate joint participation between Shenzhen and Hong Kong in the development of international standards,” Yu said.

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However, the journey is by no means free of hurdles. Both men agreed that breaking the barriers of the cross-border flow of resources, especially capital and talent, is of paramount importance if Qianhai is to maintain its leading role in Shenzhen-Hong Kong integration.

Wong said he hoped that the central government could support eligible enterprises in Qianhai to further relax cross-border capital flow to Hong Kong.

Yu’s advice is to utilize the Free Trade Account to create a financial environment conducive to flexible cross-border flow of funds between the two sides, in order to achieve the integrated development of industries and people’s livelihood.

The capital transfer issue has proved a tough nut to crack, but recently, some promising signs have emerged.

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An action plan to support the high-quality development of finance in Qianhai — which was issued by Shenzhen financial authorities this month — stated the municipal government supports exploring negative list management, enabling Qianhai to be at the forefront of implementing a new round of financial reform and opening-up.

In particular, Qianhai is being encouraged to conduct trials in the cross-border use of renminbi and facilitation of foreign exchange management.

Another action plan announced by Qianhai authorities this month also proposes promoting the interconnection of financial markets between Shenzhen and Hong Kong.

Another barrier is the limited scope of mutual recognition of professional qualifications, said Angela Chan, general manager of Qianhai-based C&Y Consulting Co Ltd.

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“Hong Kong professionals in many key fields, such as consultants and lawyers, cannot practice directly and have to cooperate with mainland institutions, increasing service costs,” Chan said. Her firm helps Hong Kong enterprises register and settle in Qianhai and provides them with consulting services on talents, compliance, and other important fields.

For example, she said, a Hong Kong company has to additionally hire local consultants for a joint contract to serve a client in Qianhai, resulting in a 40-percent increase in costs, due to the non-recognition of Hong Kong consultants’ qualifications. And if they could directly connect with clients, the project cycle would be shortened by 30 percent.

She suggested promoting a “white list” system for professional qualifications, expanding the practice scope of Hong Kong professionals in Qianhai, such as management consulting and intellectual property agency services.

She said that what she most looks forward to in the Qianhai 2025 Action Plan is the alignment and integration of rules and mechanisms. “Differences in standards and rules are the core pain points for clients’ cross-border operations because it can lead to legal disputes, increased costs and other issues,” she said.

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The plan also revealed several new projects, such as a Hong Kong-style commercial block, a Shenzhen-Hong Kong cooperation fund and a dual headquarters base for enterprises.

According to the plan, this year was designated as a crucial time for Shenzhen-Hong Kong cooperation, and as a leading pilot zone it is committed to speeding up in-depth Shenzhen-Hong Kong integration.