Shenzhen, a booming high-tech city in South China's Guangdong province, is expected to host a growing number of e-sports competitions spurred by the local government's incentive policies.

As a result, Shenzhen's position in the domestic gaming industry will be raised from a relatively low level, although the city has already aggregated the world's largest group of content providers and the nation's most platform operators, said Peng Gang, deputy director of the Longgang Cultural Industry Promotion Center on Oct 31.

The district government of Longgang issued nine incentive measures for the e-sports industry in early 2020, the first of its kind in Shenzhen, as part of a package of new policies to stimulate the development of the cultural sector in the district.

It gives the biggest-ever fiscal subsidies and awards to encourage the growth of the e-sports industry, which spans game research and the establishment of clubs to e-sports competitions and the construction of e-sports stadiums, said Peng.

"The e-sports industry is very promising in Shenzhen because it is home to Tencent, China's top enterprise in the industry," Peng said. "The government's support can help the industry grow fast."

According to the incentive polices, the district government will give an award of 2 million yuan ($299,400) to a top-level club that moves its headquarters to Longgang and 1 million yuan to a secondary-level club for a similar move.

The district government will subsidize up to 10 million yuan to a high-level e-sports competition that is held in Longgang. Clubs that win top three positions in the world's top-level competitions can be awarded up to 800,000 yuan.

Gaming companies that achieve copyright certificates for their self-developed video games will receive an award of up to 100,000 yuan, as well as another 500,000 yuan if the game can be launched online.

The operators that build or decorate stadiums for e-sports can also receive a subsidy of up to 2 million yuan, according to the incentive policies.

Kaisa Culture Sports & Technology, the sports arm of Kaisa Group, a Shenzhen-based real estate developer, recently announced plans to revamp one of its halls in Universiade Stadium in Longgang to meet the requirements of e-sports competitions at different levels.

It will work with VTG, a local e-sports company, to build a new club and participate in competitions, such as League of Legends and Glory of Kings, starting from next season under the KAISA name, said Shu Li, president of Kaisa Culture Sports & Technology.

The company signed an agreement with VTG and Mars Media to hold the competition of Mars' DOTA 2 League together in Shenhen in 2021. Developed by Mars Media, the competition has global influence.

Kaisa will also incorporate e-sports venues to the 20 stadiums that it has operated across the country in the next few years, said Shu, adding that the e-sports industry will be further integrated with tourism, culture, education, and other industries.

The Universiade Center in Longgang will host at least 100 top-level e-sports competitions annually when its renovation is completed in 2021, according to the company.