Integration with mainland benefits SAR’s startups

Increasing integration between Hong Kong and the mainland since the handover 20 years ago has brought more opportunities to startups in the special administrative region. These firms are taking advantage of the cooperative environment in the Qianhai economic zone to expand their business to an even larger market.

Experts say entrepreneurs in Hong Kong are becoming more “open-minded” and have a “stronger awareness” of setting up businesses in Qianhai, Shenzhen. They realize it will bring them many advantages.

“Local entrepreneurs are taking a more open-minded attitude toward working in Qianhai,” said Miranda Wong Ho-yee, supervisor of the Hong Kong Federation of Youth Groups. “They now have a stronger awareness about running their businesses here.”

Witman Hung Wai-man, principal liaison officer of Hong Kong affairs with Qianhai Authority, said Hong Kong entrepreneurs see great potential in developing their businesses in the zone.

Initially, Hong Kong startups moved to Qianhai mainly because of preferential policies there, including a subsidy for office rents.

But now they see great value in operating in the zone as Qianhai provides a good platform to access the vast mainland market, Hung noted.

There is also an innovation center there built to help Hong Kong’s young entrepreneurs. The Youth Innovation and Entrepreneur Hub, or E Hub, is located in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. It was launched in late 2014.

Since then, a number of local startups have made their presence felt there. They are hoping to enter the mainland market via this platform.

As of the end of last month, 87 entrepreneurial projects from Hong Kong had been incubated in the E Hub. More than 80 have secured financing, with the largest investment in a single project amounting to 700 million yuan ($102 million).

“The Hong Kong market is relatively small compared with the mainland’s,” Tim Lui, co-founder of Hong Kong startup Heartisans, told China Daily in an earlier

Local entrepreneurs are taking a more open-minded attitude toward working in Qianhai. They now have a stronger awareness about running their businesses here.” Miranda Wong Ho-yee, supervisor of the Hong Kong Federation of Youth Groups

interview. Heartisans has developed a wearable smartwatch for blood pressure monitoring and measurement.

Lui continued: “Therefore, we’re seeking to cooperate with mainland partners to promote our product there,” he said.

Lui says Qianhai acts as a bridge connecting Hong Kong startups and the mainland market. His company was also planning to set up an office there.

Known as “China’s Silicon Valley”, Shenzhen is very advanced in technological innovations. Therefore, startups in information technology sector in Hong Kong are among those most enthusiastic about expanding into Qianhai, Wong said.

Companies in cultural sector, such as art or design enterprises, were also showing increasing interest, she added.

Wong said understanding mainland policies and differing demands from its consumers were challenges Hong Kong entrepreneurs needed to tackle when operating over the boundary.

Apart from startups, a number of larger companies in the SAR have also set up offices in the zone. These include Hang Seng Bank, Chow Tai Fook and MTR.

According to official statistics, the number of Hong Kong-funded enterprises had reached 4,494 by the end of last month, with a registered capital of 388.9 billion yuan. Hong Kong companies only accounted for 4 percent of registered enterprises in Qianhai but contributed 22 percent of the total added value generated in the zone and 27 percent of tax revenue in the first quarter.

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