Qianhai firms secure HK$2.5 billion funding from Hong Kong

Cross-border funding committed by 15 Hong Kong-based banks.

The approval for renminbi loans meant for Hong Kong firms by two Shenzhen-based banks will represent the start of a collaborative lending channel. The loan deals were signed Monday.

Among the Hong Kong banks involved in the deal are Hang Seng Bank, HSBC Holdings, Standard Chartered, Bank of East Asia, Bank of China Hong Kong, ICBC (Asia), Nanyang Commercial Bank (BOCHK's mainland arm), China Development Bank Hong Kong branch, Dah Sing Banking and China CITIC Bank International.

The move will see participation from the Hong Kong branches of China Construction Bank, Agricultural Bank of China, Bank of Communications, China Merchants Bank and its subsidiary, Wing Lung Bank.

The loans having a refund period of 1 to 4 years will carry an interest rate of 4.3% to 4.5% per annum. The funds will be utilized for developing 26 projects in Qianhai. The onshore renminbi lending carries a 6% rate.

The funding will allow Qianhai, a 15 sq. km port district of Shenzhen, to implement pilot policies that extend beyond the reach of the policies adopted in the Shenzhen Economic Special Zone.

The Qianhai Cooperation Zone is a relatively independent, state approved area dedicated to developing modern service industries. It will focus on the production services industry and aims to develop finance, modern logistics, information services, technology services and other professional service industries.

China hopes to develop Qianhai into an area that will lead the world in modern service industry mechanisms and lead to the development of a cluster of modern service industries, create closer cooperation between Hong Kong and the mainland, and lead to the industrial upgrading of the Pearl River Delta region.