The Lin-gang Special Area Administration on Aug 20 announced measures for supporting the innovative development of the financial industry in the area which is a revised edition of measures released on Sept 20, 2019.

In this version, content on "support for a characteristic business format" has been added.

The goal is to build a preferred place for international financial institutions, a demonstration area for cross-border asset management and a pilot port for fin-tech innovation. To do so, incentive measures are clearly stipulated for newly introduced foreign-controlled financial institutions, asset management companies and fin-tech companies.

In addition, corresponding bonus grants have been added to support new hires to the area and to support other guarantees.

The following are excerpts from the measures:

• To attract institutions

7. For all kinds of financial enterprises in the Lin-gang Special Area that need to increase their paid-in capital due to business development, the balance of a subsidy that was offered will be made up, according to the accumulative paid-in capital after the capital increase reaches the scale of the higher paid-in capital.

For those that have already benefitted from an institution settlement subsidy, the balance of the subsidy will be made up according to the subsidy standards of the newly introduced legal entity institutions.

For those who have not received an institution introduction subsidy, the corresponding settlement subsidy shall be given according to the scale of the accumulated paid-in capital reached – after the capital increase, following the subsidy standards of the newly introduced legal entity institution.

• To support a characteristic business format

12. Building a preferred place for foreign financial institutions. For newly introduced wholly foreign-owned or controlled financial institutions, another subsidy will be added in addition to the subsidy for attracting institutions.

13. Building a demonstration area for cross-border asset management. For newly introduced wealth management companies of banks, securities asset management companies, insurance asset management companies, public funds – and QFLP / QDLP pilot institutions and other asset management institutions – a certain subsidy will be given every year within four years from the second year of introduction. The accumulative total subsidy cannot exceed 40 million yuan ($6.17 million).

14. Building a pilot port for fin-tech innovation. For financial technology companies with a large investment scale, large population introduction and a strong development momentum, a certain subsidy will be added in addition to the subsidy for those meeting the conditions in article 2 of the measures.

• For recruitment support and guarantees

15. The senior managers of newly introduced legal entity licensed financial institutions will be given a one-time recruitment bonus of 200,000 yuan per person.