Interpretation: Notice on (First List of) Policies and Measures for Industrial Promotion of the Shunyi Cluster in China (Beijing) Pilot Free Trade Zone

I

Promoting the Launch of Major Industrial Projects

1. Support for land use projects. The actual investment per mu (1/15 hectare) of land for construction purposes is above CNY 8 million, and the contribution to local fiscal revenue per mu is above CNY 1.3 million. The annual output per mu exceeds CNY 20 million, and the contribution to local fiscal revenue per mu is more than CNY 1.3 million.

(1) Industrial projects may be subsidized by CNY 2,000 per square meter in floor area provided that construction of above-ground structure is completed and filed for records according to the building permit for construction works. For manufacturing industrial projects, a subsidy equivalent to 30% of the investment in production lines as well as research and development equipment may be granted.

(2) Sequentially, 30% of the total project subsidy will be granted upon completion and acceptance of an eligible project, or completion of the installation of its production line equipment. Another 30% of the total subsidy may be granted upon the industrialization of the project. The remaining 40% of the total subsidy may be granted when the projects meet all standard conditions stipulated in the Measures within 3 years of obtaining the building permit for construction works.

(3) The aforementioned subsidies for construction of above-ground structures, production lines, and R&D equipment may apply simultaneously, with a maximal total amount of not more than CNY 100 million.

2. Purchase of factories and buildings. It requires an annual output of over CNY 100 million, or annual contribution to local fiscal revenue of more than CNY 10 million.

(1) Eligible industrial projects may receive an acquisition expense subsidy of CNY 2,000 per square meter in floor area for their legally purchased factory buildings in Shunyi (excluding residential buildings and other supporting facilities) with clear property rights. For manufacturing industrial projects, a subsidy equivalent to 30% of the investment in production lines and R&D equipment may be granted.

(2) Eligible industrial projects settled in Shunyi may receive 40% of the total subsidy for acquisition expenses upon successful transfer of property rights for the purchased factory buildings or completion of the installation of production line equipment. The remaining 60% of the total subsidy may be granted when the projects meet all standard conditions stipulated in the Measures within 3 years of its production and operation.

(3) The aforementioned subsidies for purchase of factory buildings and installation of production lines and R&D equipment may apply simultaneously with a maximal total amount of subsidies of not more than CNY 20 million.

3. Rental of factories and buildings. It requires an annual output of over CNY 50 million, or annual contribution to local fiscal revenue of more than CNY 5 million.

(1) Eligible industrial projects that legally rent factory buildings in Shunyi with clear property rights (excluding residential buildings and other supporting facilities) may receive a subsidy equivalent to 50% of the actual rent incurred in the year of application. For manufacturing industrial projects, a subsidy equivalent to 30% of the investment in production lines and R&D equipment may be granted.

(2) Eligible projects may receive 40% of the total subsidy upon contract signing and actual payment of the rents in full, or completion of the installation of production line equipment. The remaining 60% of the total subsidy may be granted when the projects meet all standard conditions stipulated in the Measures within 3 years.

(3) The aforementioned subsidies for rents and installation of production lines and R&D equipment may apply simultaneously. The total amount of subsidies is subject to an upper limit which stipulates that an individual legal person entity may receive an annual maximum of up to CNY 10 million  for a period of not more than three years.

4. Eligible enterprises cooperating with fund companies in Shunyi, or co-launching project-type funds with government financial funds may receive the equity investment support of up to CNY 1 billion.

Promoting the Development of Enterprises in Shunyi

5. Eligible enterprises registered in Shunyi after the implementation of the Measures, may receive a subsidy equivalent to 15% of their contribution to the regional economy (between CNY 3 million and CNY 5 million from the date of their formal production and operation,) in the year of application, 25% for a contribution between CNY 5 million and CNY 10 million, and 45% for a contribution amounting to over CNY 10 million. The duration of the support will be three years.

6. The percentage of supporting funds shall be increased by 5% for headquarters-type enterprises registered in Shunyi after the implementation of the Measures.

7. The management team of eligible enterprises that contribute more than CNY 3 million to the regional economy may receive financial support equivalent to 6% of their contribution in the year of application.

8. From the release of the Measures, enterprises with a year-to-year incremental contribution to the regional economy of more than CNY 10 million may receive a subsidy equivalent to 20% of the incremental amount. Enterprises registered in Shunyi before the release of the Measures may apply for the support for incremental contribution from the year of the release. Enterprises registered in Shunyi after the release of the Measures may apply for such support from the year following the release.

9. The percentage of supporting funds for incremental contribution may be increased by 10% for headquarters-type enterprises registered in Shunyi after the release of the Measures. For headquarters-type enterprises registered in Shunyi before the release of the Measures, provided that they are upgraded to higher levels or add new headquarters-related functions, may receive a 10% higher percentage of supporting funds for incremental contributions.

Promoting Scientific and Technological Innovation

10. Enterprises that carry out major scientific and technological research and development in the fields of high-end, precision and sophisticated industries, and social construction, urban management, and services for people's livelihood may receive financial support of up to RMB 5 million on a merit basis. Projects that receive the State Science and Technology Award and the Beijing Science and Technology Award will be granted support equivalent to 50% of the corresponding bonus standards. For R&D institutions that are independently established upon approval by the Ministry of Science and Technology or Beijing Municipal Science and Technology Commission (or with other departments), and engaged in the development of technologies, products, and processes as well as related technical services in the fields of natural science, and science and technology, national-level ones may be granted CNY 2 million in support, and CNY 500,000 for Beijing municipal-level ones. China R&D centers registered in Shunyi by Fortune 500 companies may receive up to CNY 2 million in financial support on a merit basis.

11. National high-tech enterprises that alter their locations for business and tax registration to Shunyi within the validity period of their national high-tech enterprise certificate may be granted CNY 300,000 in financial support. Enterprises that receive a national high-tech enterprise certificate for the first time in Shunyi may receive CNY 300,000 in financial support. Enterprises that have filed with the Ministry of Science and Technology, and succeeded again in applying and obtaining the national high-tech enterprise certificate after expiry may be granted CNY 100,000 in financial support.

12. Professional and industry activities such as scientific and technological innovation-themed conferences, technical seminars, industry forums, and international exhibitions carried out in Shunyi District may be supported on a merit basis in accordance with 50%, 70%, and 100% of the actual costs of the activities, up to a maximum of CNY 10 million.

13. Science and technology service institutions as well as public service platforms in Shunyi may be given up to CNY 1 million in support on a merit basis. Science and technology service institutions and public service platforms that independently introduce high-end, precision and sophisitcated projects to Shunyi may be given one-time support of up to CNY 3 million on a merit basis, or alternatively, may receive funding support equivalent to 10% of the annual contribution to the regional economy of the introduced projects for three consecutive years, totaling no more than CNY 5 million. Applicants successfully introducing multiple eligible projects to Shunyi may receive a cumulative support of not more than CNY 10 million in a single year. For science and technology service institutions and public service platforms of colleges, universities and institutes signed with the Beijing Coordination and Service Platform for the Commercialization of Science and Technology Achievements, their early-stage projects in line with the industrial development in Shunyi, ready for intermediate testing and maturation and with good market prospects, may receive up to CNY 500,000 in funding per project on a merit basis provided that they are committed to commercializing their scientific and technological achievements in Shunyi within two years. For applicants with multiple eligible projects, the annual accumulative support for each applicant may not exceed CNY 3 million.

14. Technology sellers registered in Shunyi may receive financial support for the amount of technology transaction formally recognized and registered by science and technology departments: CNY 100,000 for the transaction amount from CNY 20 million and above to CNY 100 million, CNY 300,000 for the transaction amount from CNY 100 million and above to CNY 500 million, CNY 500,000 for the amount from CNY 500 million and above, accumulatively.

15. Up to CNY 2 million in financial support on a merit basis may be granted to eligible enterprises in Shunyi that have signed formal cooperation agreements with higher learning institutions, research institutes, and industrial alliances on key industries and fields of Shunyi to conduct research on key and core technologies.

16. For industry-leading scientific and technological achievements with proprietary intellectual property rights for pilot run or commercialization in Shunyi, directly applicable to the high-end, precision and sophisticated industries prioritized by Shunyi, and with good market prospects, financial support may be granted on a merit basis equivalent to 70% of the expenses for R&D equipment procurement, R&D personnel expenditure, new product trial production, and intermediate testing, up to a maximum of CNY 10 million. Priorities shall be given to supporting the application and commercialization of achievements made by the Beijing Coordination and Service Platform for the Commercialization of Science and Technology Achievements and the three science cities.

Promoting Industrial Finance

17. Financial institutions in line with the strategic positioning of Beijing as the "four centers" and registered and taxed in Shunyi after the implementation of the Measures may enjoy a one-time subsidy for initial expenses.

(a) Legal person financial institutions established with the approval of the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and other financial regulatory authorities, according to the size of paid-up capital shown in the capital verification report, may receive a subsidy of CNY 5 million for paid-in capital from CNY 100 million and above to CNY 500 million, CNY 10 million for paid-in capital from CNY 500 million and above to  CNY 1 billion, CNY 20 million for paid-in capital from CNY 1 billion and above to CNY 3 billion, and CNY 50 million for paid-in capital of CNY 3 billion and above.

(b) Financial leasing companies, commercial factoring companies, microfinance companies, and trading centers established upon approval by the Beijing Local Financial Supervision and Administration, according to the size of paid-up capital shown in the capital verification report, may receive a subsidy of CNY 2.5 million for paid-in capital from CNY 100 million and above to CNY 500 million, CNY 5 million for paid-in capital from CNY 500 million and above to CNY 1 billion, CNY 10 million for paid-in capital from CNY 1 billion  and above to CNY 3 billion, and CNY 25 million for paid-in capital of CNY 3 billion and above. If the aforementioned financial institutions increase their capital and the paid-in capital increases by CNY 1 billion or more, a one-time subsidy of CNY 2 million may be granted. (With a maximal period of three years for such subsidy support, successful applicants may receive not more than the above maximum subsidy amount. Furthermore, the annual subsidy amount shall not exceed the contribution of the institution to the regional economy in the current year. Institutions that are estimated to contribute significantly to the regional economy in the current year may be given a one-time subsidy for initial expenses.)

  1. Alternative financial institutions may according to the aforementioned rules enjoy a one-time subsidy for initial expenses provided that they play an active role in building Shunyi into an industrial financial center of Beijing, are engaged in businesses such as investment, asset management, financial technology, and financial services, fall into the scope of the finance industry statistically and perform settlement functions.

(c) Functional headquarters of financial institutions with settlement functions may be granted a one-time subsidy for initial expenses according to the amount of paid-in capital by the enterprise headquarters shown in the capital verification report, CNY 2.5 million for paid-in capital from CNY 100 million and above to CNY 500 million, CNY 5 million for paid-in capital from CNY 500 million and above to  CNY 1 billion, CNY 10 million for paid-in capital from CNY 1 billion and above to CNY 3 billion, and CNY 25 million for paid-in capital of CNY 3 billion and above. (With a maximal period of three years for such subsidy support, successful applicants may receive not more than the above maximum subsidy amount. Furthermore, the annual subsidy amount shall not exceed the contribution of the institution to the regional economy in the current year. Meanwhile, institutions that are estimated to contribute significantly to the regional economy in the current year may be given a one-time subsidy for initial expenses.)

(d) A one-time subsidy of CNY 200,000 for initial expenses may be provided to newly established and independently-accounted branch banks (first-level banks under direct jurisdiction), property insurance branch companies, and business departments of securities companies.

18. Financial institutions registered and taxed in Shunyi after the implementation of the Measures may enjoy office space purchase or rent subsidies. The area of newly purchased or leased self-use office space shall fit the actual needs.

(a). Applicants purchasing office space may receive a subsidy of CNY 1,500 per square meter, up to a maximum of CNY 20 million, being paid sequentially at 40%, 40%, and 20% in a period of three years.

(b) Financial institution leasing office space may receive a subsidy equivalent to 50% of the annual rent paid for each of the first three years from the starting date of the lease, to a cumulative maximum of CNY 10 million.

(c) Temporary office space with a certain area may be provided free of charge for a period of not more than 1 year to headquarters of national financial institutions, headquarters of international financial institutions, and the first-level branches of Chinese and foreign financial institutions to be registered and established in Shunyi during their preparatory stage. Should the preparation period last for less than 1 year, the actual preparation period shall prevail.

19. Foreign-funded legal banking entities, China-foreign securities joint ventures, foreign-owned securities companies, insurance headquarters, investment companies, asset management institutions, and other financial institutions registered and taxed in Shunyi after the implementation of the Measures, may receive an additional one-time award of up to CNY 5 million for their settlement in the district, provided that they are estimated to make significant contributions to the regional economy and society.

20. The executive management teams of legal person financial institutions registered and taxed in Shunyi after the implementation of the Measures and urgently needed by the district may, with the approval of the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission, be awarded CNY 10 million in each of the first three years.

21. Institutions for angel investment, venture capital investment, and equity investment, provided that both fund managers and their managed funds register and pay tax in Shunyi (either of the two is registered in the district after the implementation of the Measures), may receive a one-time financial support of CNY 2 million for an accumulative actual investment from CNY 1 billion and above to CNY 3 billion, CNY 5 million for an amount from CNY 3 billion and above to CNY 5 billion, and CNY 7.5 million for an amount of CNY 5 billion or above. Funds that have successfully exited and supported the public listing of enterprises may receive additional financial support of CNY 5 million for an accumulative investment in Beijing from CNY 3 billion and above to CNY 5 billion, and CNY 7.5 million for an accumulative investment in Beijing of CNY 5 billion or above.

22. Fund managers may be rewarded according to the number of introduced projects, with CNY 500,000 for three to four projects, CNY 800,000 for five to nine projects, and CNY 1 million for 10 or more projects (The paid-in capital for introduced projects must reach CNY 30 million or above, and their shall register and pay tax in Shunyi District). At the same time, for introduced projects that contribute more than CNY 3 million to the regional economy in the current year, 1% of its contribution may be given to the fund manager as an incentive.

23. Financial (financing) leasing, commercial factoring, microfinance, and financing guarantee companies in Shunyi which provide financing support or guarantee services for enterprises in the district may be granted a subsidy equivalent to 1% of the total amount of financing or the additional amount of guarantees they provide to enterprises in the district in the current year. A single financial institution may receive subsidies up to an annual maximum of CNY 5 million (the term of a single business contract should be more than half a year).

24. Enterprises cultivated for public listing may receive up to CNY 10 million in financial support. An eligible enterprise to be listed on China's A-share markets may be provided with CNY 3 million in financial support after the demutualization, CNY 3 million after the pre-listing tutoring, and CNY 4 million after being successfully listed. Eligible enterprises to be listed on the Science and Technology Innovation Board of China's A-share market, or well-known overseas capital markets may be granted CNY 6-10 million in one-off financial support according to the scale of enterprises and other indicators. Eligible enterprises to be quoted on China's National Equities Exchange and Quotations (NEEQ), also known as the "new third board", may be provided with CNY 500,000 in funding support after the demutualization, and CNY 1 million after being quoted. Newly relocated quoted enterprises may be given full financial support according to the stock market. Quoted enterprises that successfully transfers to a higher stock market may receive the difference of the two markets.

Promoting human resources services

25. High-level talents with outstanding performance and contributions are encouraged and supported to apply for city-level awards. Cases of being included into regular or key talent attract projects may be funded according to a 1:1 ratio. Enterprises may receive a certain amount of talent attraction funding for each identified high-level talent being introduced into the enterprises. Enterprises that flexibly introduce high-level talents may receive a one-time talent attraction grant.

26. High-level talents that have settled in Shunyi District and undertaken major international or national science and technology projects may be provided up to CNY 10 million in project funding. Those who have undertaken major municipal science and technology projects may be provided with up to CNY 5 million in project funding. At the same time, they can directly apply for professor-level professional titles in the engineering technology series or scientific research series without being restricted by academic qualifications, titles, or other conditions. A subsidy of up to CNY 10 million may be granted to newly relocated or recognized national and municipal-level corporate technology centers, key laboratories, science and technology R&D institutions, academician and expert programs, postdoctoral research programs, postdoctoral (young talent) innovation practice bases, and bases for the commercialization of scientific and technological achievements provided that major scientific and technological achievements above the municipal level have been made, and the achievements are commercialized in Shunyi. Enterprises and universities are encouraged to jointly build talent cooperation bases, and may receive up to CNY 5 million in financial support for the implementation and commercialization of major projects. Headhunting agencies and high-level talent intermediary service agencies that are renowned domestically and abroad and have settled in Shunyi District may be rewarded up to 70% of their contribution to the region. Talent service agencies that successfully introduce high-level talents to Shunyi District may receive up to CNY 2 million per year in talent introduction funding.

27. Assistance in relocation of household registration and application for Beijing Work and Residence Permit shall be provided to high-level talents in Shunyi District that are from other cities and regions, urgently needed for industrial development and meet the talent introduction conditions. For enterprises that match the developmental direction of Shunyi District and have made outstanding contributions, graduates' household registration application will be handled according to the requirements of Beijing's policies. Enterprises that meet Beijing’s requirements for high-end, precision and sophisticated industries may apply for local household registration for exceptional doctoral students. High-level talents to purchase commodity housing for the first time in Shunyi District may receive housing subsidies according to their contribution at different levels. High-level talents to rent market-oriented housing may receive a rent reduction of up to 150 square meters. High-level talents to use rental subsidy may receive a rental subsidy of up to CNY 25,000 per month. High-level talents may also enjoy a subsidy of up to CNY 500,000 for purchase of vehicles or up to CNY 5,000 per month for car rental (for a maximum of 3 consecutive years). It shall be arranged for children of qualified talents to attend nearby schools for their compulsory education without having to attend entrance exams. For foreign children applying to international schools in Shunyi District, their enrollment shall be arranged based on their willingness as well as the students of international schools. Quality resources of Grade A tertiary hospitals in the district shall be arranged to provide professional medical services for high-level talents according to their needs. A family doctor contract service shall be established to provide timely medical advisory services.

Promoting intermediary services

28. Intermediaries introducing individual projects may be financially rewarded according to the following criteria:

a. Eligible intermediaries introducing new projects to Shunyi through acquisition of land from the land market may receive a reward equivalent to 2.5‰ of the fixed asset investment in place from CNY 100 million and above to CNY 200 million, 3‰ of the fixed asset investment in place from CNY 200 million and above to CNY 1 billion, 4‰ of the fixed asset investment in place amounting to CNY 1 billion or above, up to a maximum of CNY 5 million.

b. Eligible intermediaries introducing new projects to efficiently use storage resources or only register in Shunyi, may receive rewards accordingly for contribution to the regional economy in a complete financial year from the official date of production and operation of the projects, equivalent to 5% of the contribution from CNY 500,000 and above to CNY 1 million, equivalent to 6% of the contribution from CNY 1 million and above to CNY 3 million, equivalent to 8% of the contribution from CNY 3 million and above to CNY 5 million, equivalent to 10% of the contribution amounting to CNY 5 million or more, up to a maximum of CNY 5 million.

c. Eligible intermediaries that introduce the headquarters of unicorn enterprises, gazelle enterprises, hidden champions, and little giant enterprises to Shunyi may apply for a one-off incentive of CNY 500,000 after the project enterprises are successfully registered in the district.

29. Platform-type intermediaries such as start-up bases and incubators that promote industrial development and enterprise clustering may receive rewards accordingly for the accumulative contribution of the new projects to the regional economy in the first full financial year, equivalent to 10% of the contribution from and above CNY 1 million, up to a maximum amount of CNY 5 million.