The Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone – located in East China's Shanghai city – rolled out a new round of measures on Feb 5 to support the development of headquarters institutions, in a sector known as the headquarters economy.

To qualify, the institutions that want to enjoy the benefits should register, operate their businesses and manage their finances and tax accounts in Lin-gang – as well as be accredited by the Shanghai Municipal Commission of Commerce or the area's administration.

The measures give priority to HQs in Lin-gang to participate in existing incentives there and to enjoy financial policies applicable to the China (Shanghai) Pilot Free Trade Zone. They may also benefit from policies and measures that support trade and investment liberalization and facilitation, issued by the national financial management administrations.

Lin-gang residents already have access to considerable efficient and convenient financial services. Qualified headquarters institutions would be included in the high-quality enterprises list and so enjoy the facilitation policies for cross-border renminbi foreign exchange settlements.

The headquarters can also receive support to conduct cross-border financial activities, such as issuing bonds, investments, mergers and acquisitions, in line with international norms and rules. They are encouraged to conduct cross-border capital pool business, with a combination of domestic and foreign currency.

The measures were also set in place to help headquarters institutions expand their direct financing channels. This will be done by guiding and encouraging funds of different kinds to invest in the institutions' equity, setting up and improving coordinating working mechanisms to encourage HQ institutions to conduct financing on domestic and foreign capital markets - and supporting them to issue bonds and asset-backed securities on domestic capital markets.  

The measures also include credit aids, such as encouraging financial institutions to provide credit fund support for headquarters institutions - in terms of financing assurances, subsidized loans and risk compensation - and to provide foreign-exchange derivatives and other individualized services in line with international practice, according to the demands of the institutions.