Foreign investors flock to Guangdong

This article is from the Guangdong chapter of the 2015 Annual Review and is available for download here.


Irene Yang of Guangda Law Firm highlights the investment opportunities, foreign exchange benefits and dispute resolution methods in the Guangdong FTZ and why multinationals should get involved

1. What differentiates the Guangdong FTZ from the other FTZs?

Compared with the other Free Trade Zones (FTZs), the Guangdong FTZ specialises in playing the Hong Kong and Macau card. It will establish a Guangdong-Hong Kong-Macau financial cooperation innovation system and Guangdong-Hong Kong-Macau service trade liberalisation and, through system innovation, promote the dovetailing of Guangdong, Hong Kong and Macau trading rules. Its strategic positioning serves the mainland and faces the world, with Hong Kong and Macau at its back, making the FTZ a profound Guangdong, Hong Kong and Macau model cooperation zone, a key node in the 21st Century maritime silk road and a forerunner in the newest round of national reform and opening up to the global market.

2. What are the industrial emphases of each of the three parks that make up the Guangdong FTZ?

The Nansha New Area of Guangzhou emphasises the development of industries such as shipping, logistics, finance with special characteristics, international trade and high-end manufacturing, as well as the establishment of a new modern industry highland with a leading production-type service industry and a comprehensive world-class service hub.

The Qianhai and Shekou Area of Shenzhen emphasises the development of strategic new service industries such as finance, modern logistics, information services and technical services, as well as the establishment of a pilot model window for opening to foreign investment for China's finance industry, an important base for the world's service trade as well as an international hub port..

The Hengqin New Area of Zhuhai emphasises the development of industries such as tourism, leisure and health, business and financial services, culture, science, education and high and new technology, as well as the establishment of a pioneer area where culture and education are open to foreign investment and an international business service, leisure and tourism base and the creation of a new medium for the appropriately diversified development of Macau's economy.

3. What unique advantages does the Nansha FTZ offer?

There are three main unique advantages enjoyed by the Nansha FTZ. Firstly, it has an advantageous geographic location, linked to Dongguan, Zhuhai, Jiangmen and Zhongshan. The Nansha FTZ can boost the development of small and medium enterprises in these cities, providing them an enterprise development platform and driving the concentration of adjacent industries. Secondly, Nansha Port, as a node that links the cluster of cities on either bank of the Pearl River Delta, naturally promotes the development of the foreign trade and logistics industry of the FTZ. Thirdly, the 60 square kilometres of the Nansha FTZ are the largest area of the Guangdong FTZ, giving it greater potential in terms of space and development size.

4. What is the relationship between the FTZ policies and the incentive policies under CEPA?

The FTZ policies and the incentive policies under CEPA mutually reinforce and affect each other. The FTZ policies explore a more profound opening to Hong Kong and Macau under the framework of CEPA, namely the Mainland and Hong Kong Closer Economic Partnership Arrangement, the Mainland and Macau Closer Economic Partnership Arrangement and their supplements, further abolishing or relaxing access restrictions on Hong Kong and Macau investors in terms of qualification requirements, shareholding percentage, scope of business, etc. and achieving noted breakthroughs in sectors such as financial services, transport and shipping services, business and trade services, professional services, and scientific and technological services. Additionally, the overlap of FTZ and CEPA policies can give rise to synergies, further dovetailing of administrative measures and the business environment with those internationally, further facilitating the business expansion by Hong Kong and Macau enterprises and orienting more mainland enterprises to the outside world.

5. For foreign-invested enterprises, what is the concept of “record filing and check and approval system” for registration in the Nansha FTZ?

The Guangzhou City People's Government, Decision on Provisionally Revising the Implementation of Relevant Guangzhou Government Rules and Regulations in the Nansha Area of Guangzhou of the China (Guangdong) Pilot Free Trade Zone (Draft) adopted by the Executive Committee of the Guangzhou municipal government in July this year specifies that the model for the administration of foreign investment not covered by the Negative List is to be changed from the examination and approval system or special administrative measures to record filing. In other words, projects in sectors covered by the Negative List are subject to the check and approval system, whereas those in sectors not covered by the List are to be uniformly subject to administration by record filing. Based on the current record filing procedure, if reported particulars fall within the scope of record filing, a foreign investor can collect a Certificate of Record Filing of a Foreign-invested Enterprise within three working days. For a foreign-invested enterprise, this model reduces and abolishes restrictions on foreign investment access and offers great convenience for foreign investors investing in the Nansha FTZ. Furthermore, the implementation of record filing will further facilitate foreign investment in the zone, creating an open, transparent, internationalised, pro-market and law-oriented business environment.

6. What are the innovative measures in finance made in the Nansha FTZ?

Certain novel features in the zone include cross-border renminbi business innovations, financial conversion innovations and lease financing.

Financial institutions in the Nansha New Area are permitted to offer cross-border renminbi settlement financial services to residents from Hong Kong, Macau and Taiwan (including institutions and individuals). It serves as a pilot region for uniform administrative regime reform for the Chinese-invested and foreign-invested lease financing industry, with the proposed formulation of uniform lease financing market access criteria for Chinese-invested and foreign-invested enterprises.

7. What new opportunities in cross-border e-commerce can be found in the Nansha FTZ?

The Nansha New Area intends to launch a pilot project for renminbi denominated businesses, e.g. there is a possibility of new implementing rules being issued to permit individual consumers in the area to directly purchase goods through the cross-border e-commerce market using renminbi. This will be an excellent opportunity to promote the cross-border e-commerce business.

8. How can enterprises use the Nansha FTZ to carry out cross-border equity investments (both inbound and outbound)?

Foreign-invested equity investment enterprises established in the zone can convert a certain percentage of their foreign exchange registered capital and deposit the renminbi proceeds into a dedicated account. Provided that they have a genuine project and provide the relevant supporting documentation, they can use the renminbi funds in the dedicated account to engage in domestic equity investment.

9. How can multinational corporations set up in the Nansha FTZ to enjoy all possible conveniences?

Multinational corporations can borrow and obtain financing from banks in the Nansha New Area and use the renminbi proceeds to invest in overseas projects. They can also simultaneously or separately open domestic and international master foreign exchange fund accounts to centrally manage the foreign exchange funds of domestic and foreign member enterprises.

10. What innovations are there in cross-border dispute resolution mechanisms in the Nansha FTZ?

(1) Exploration of the establishment of a Guangdong-Hong Kong-Macau financial consumer rights and interests protection coordination mechanism and non-judicial financial dispute resolution mechanisms, such as conciliation, professional mediation and arbitration.

(2) Exploration of mechanisms for resolving collective labour disputes, e.g. establishment of an FTZ labour relations coordination committee, an administrative mediation system and a regional collective labour dispute mediation commission led by a relevant government department, as well as other such innovative resolution mechanisms.

(3) Promotion by commissions such as the Nansha International Arbitration Centre and Shanghai International Economic and Trade Arbitration Commission of the establishment of a Chinese Pilot Free Trade Zone arbitration alliance to enhance the level of professional and international service of arbitration in China's FTZs.


Author biography

Irene Yang
Senior partner

Irene Yang began her legal practice with Guangda in 1998 and became a partner in 2004. From June 2004 to June 2005, as a participant of the British Lord Chancellor's Training Scheme for Young Chinese Lawyers, Irene worked as a visiting lawyer with Lovells London, Brick Court Chamber (Middle Temple Inn, London) and Lovells Hong Kong.
Irene's practice mainly focuses on foreign-related legal issues, corporate & securities, banking & finance, etc. She has been involved in numerous cross-border equity/asset reorganisations, M&A, IPOs, bond issuances and fund formation issues. She also acts as long-term legal counsel for many high-profile clients on their investment or funding issues. Apart from legal practice, Irene participates proactively in organisations related to high-tech and market regulation and writes study papers on those fields.

广大律师事务所的杨闰律师重点阐述了广东自贸区的投资机遇、外汇优惠和争议解决办法，以及跨国企业需参与的理由

1. 广东自贸区与其他自贸区有何不同？

与其他自贸区相比，广东自贸区主打港澳牌，将建立粤港澳金融合作创新体制、粤港澳服务贸易自由化，以及通过制度创新推动粤港澳交易规则的对接。其战略定位为依托港澳、服务内地、面向世界，将自贸试验区建设成为粤港澳深度合作示范区、21世纪海上丝绸之路重要枢纽和全国新一轮改革开放先行地。

2. 广东自贸区的三个园区分别有什么产业侧重？

广州南沙新区片区重点发展航运物流、特色金融、国际商贸、高端制造等产业，建设以生产性服务业为主导的现代产业新高地和具有世界先进水平的综合服务枢纽。

深圳前海蛇口片区重点发展金融、现代物流、信息服务、科技服务等战略性新兴服务业，建设我国金融业对外开放试验示范窗口、世界服务贸易重要基地和国际性枢纽港。

珠海横琴新区片区重点发展旅游休闲健康、商务金融服务、文化科教和高新技术等产业，建设文化教育开放先导区和国际商务服务休闲旅游基地，打造促进澳门经济适度多元发展新载体。

3. 南沙自贸区有什么独特的优势？

南沙自贸区的独特优势主要有以下三点。首先，南沙自贸区拥有优越的地理位置，连接东莞、珠海、江门与中山，南沙自贸区可以带动以上城市中小企业的发展，为其提供企业发展平台，带动周边产业聚集；另外，南沙港作为连接珠三角两岸城市群的枢纽性节点，必然会促进自贸区对外贸易、物流行业的发展。此外，南沙自贸区共60平方公里，是广东自贸区中最大的片区，在空间和发展规模上都有较大潜力。

4. 自贸区政策和CEPA下的优惠政策关系是怎样的？

自贸区政策与CEPA下的优惠政策之间相互联系、相互影响。自贸区政策是在CEPA框架下，即《内地与香港关于建立更紧密经贸关系的安排》、《内地与澳门关于建立更紧密经贸关系的安排》及其补充协议框架下探索对港澳更深度的开放，进一步取消或放宽对港澳投资者的资质要求、股比限制、经营范围等准入限制，重点在金融服务、交通航运服务、商贸服务、专业服务、科技服务等领域取得突破。同时，自贸区政策与CEPA政策的迭加能产生协同效应，管理办法和营商环境进一步与国际接轨，港澳企业拓展业务更为便利以及能够让更多的内地企业更加面向国际。

5. 对于外商投资企业而言，在南沙自贸区注册的“备案制+核准制”是什么概念？

今年7月广州市政府常务会议审议通过的《广州市人民政府关于在中国（广东）自由贸易试验区广州南沙新区片区暂时调整实施本市有关政府规章规定的决定（草案）》中规定对负面清单之外的外商投资管理模式由审批制或特别管理措施改为备案管理，即对负面清单以内领域的项目实行核准制，对负面清单以外领域的项目统一实施备案管理。根据目前的备案流程，申报事项如属于备案范围的，外商可以在3个工作日领到《外商投资企业备案证明》，对于外商投资企业而言，此模式减少和取消了对外商投资准入限制，为外商在南沙自贸区的投资提供了极大的便利。此外，外商投资备案管理的实施，将进一步提高南沙自贸片区外商投资便利化程度，营造公开、透明和国际化、市场化、法治化的营商环境。

6. 南沙自贸区在金融创新方面的举措有哪些？

自贸区的一些特点包括：跨境人民币业务创新、金融汇兑创新、融资租赁等。

南沙新区内的金融机构允许为港澳台居民(包括机构和个人)提供跨境人民币结算金融服务。内、外资融资租赁行业统一管理体制改革试点地区，拟制定内、外资统一的融资租赁市场准入标准。

7. 对于跨境电子商务，能在南沙自贸区找到什么新机遇？

南沙新区拟开展人民币计价业务试点，如允许南沙新区个人消费者通过跨境电子商务市场直接使用人民币来购买商品等新实施细则很可能出台，这对于跨境电子商务业务促进将是一个良好的机遇。

8. 对于股权投资企业而言，如何利用南沙自贸区进行跨境（对内及对外）股权投资？

在区内设立的外商投资股权投资企业可将一定比例的外汇资本金结汇，并将结汇所得人民币资金存放于专用账户内，在有真实项目并提供相关证明材料的前提下用专用账户内人民币资金开展境内股权投资。

9. 跨国公司如何在南沙自贸区内进行部署以享受尽可能多的便利?

(1) 向南沙新区的银行贷款融资用人民币投资海外项目；

(2) 同时或单独开立国内、国际外汇资金主账户，集中管理境内外成员企业外汇资金。

10. 南沙自贸区在跨国争议解决机制上有何创新？

(1) 探索建立粤港澳金融消费者权益保护协作机制以及和解、专业调解、仲裁等金融纠纷司法替代性解决机制；

(2) 探索针对群体性劳动争议处理机制，如建立自贸区劳动关系协调委员会、建立行政调解制度，成立政府相关部门牵头的区域性群体性劳动争议调解委员会等创新处理机制；

(3) 南沙国际仲裁中心与上海国际经济贸易仲裁委员会等委员会发起在发起建立中国自由贸易试验区仲裁合作联盟，提升中国自贸区仲裁专业化和国际化服务水平。


作者简历

杨闰
高级合伙人

杨闰律师自1998年起在广大律师事务所执业，2004年成为合伙人。2004年6月至2005年6月期间赴英培训一年，先后在英国霍金路伟律师事务所（Hogan Lovells）、Brick Court Chamber大律师办公室（位于伦敦的Middle Temple Inn）及Hogan Lovells香港分所短期工作。
杨律师的执业主要集中于涉外法律服务、公司、证券、银行、金融等领域。曾参与许多跨境股权/资产重组、并购、IPOs、债券发行及基金设立业务。她也长期为著名的客户提供有关它们投融资问题方面的法律意见。除了业务实践外，杨律师还积极参与了与知识产权/高新技术有关的行业组织并撰写相关的专业论文。