South China financial hub demonstrating sterling success due to good policies

The central authorities' policies and measures have injected new momentum into the development of technological innovation and scientific research in Shenzhen, said local investors and entrepreneurs.

To celebrate the 40th anniversary of the founding of Shenzhen Special Economic Zone, the central authorities in October rolled out a five-year implementation plan to build the city into a demonstration area of socialism with Chinese characteristics, and issued a list of 40 authorized pilot measures.

One of the key aims is to enhance the city's technological innovation ability as detailed measures are taken in terms of attracting investment and talent, protecting intellectual property rights and optimizing the scientific research achievement transfer mechanism.

A national integrated platform connecting technology and capital markets will be set up to provide one-stop services for the transaction and transfer of scientific and technological achievements.

The platform is expected to confirm, register and publicize IP rights, thus forming a market-oriented pricing and trading mechanism for IP rights and property rights of scientific and technological achievements.

Hong Jing, a manager at Shenzhen HTI Group Co Ltd, an investment firm for high-tech startups, said he is looking forward to a comprehensive market of IP evaluation, handling and funding.

He said evaluation difficulty is a major deficiency of the nation's existing IP funding channels, thus causing problems for financial institutions to find firms with core technologies.

Besides the prevailing method of banks' IP pledge financing, HTI has taken bold moves in the securitization of IP rights since last year, including the issuance of the nation's first IP-related asset-backed securities product with underlying assets of creditor's rights on small-sum loans. So far, it has issued four products related to the securitization of IP rights.

Zhou Jian, founder and chairman of Ubtech, a Shenzhen-based robot maker, said that a center for technology and capital markets is a huge boon to Shenzhen's emerging industries, which are expected to become the city's pillar and require strong legislative guarantees.

Zhou said technological innovation also depends on substantial capital investment and improving the marketization of IP rights and scientific research results transfer.

"We are encouraged by these measures to keep innovating new technologies and strengthening self-funding capabilities so that we can research and study the most cutting-edge technologies," the entrepreneur added.

Inspired by Shenzhen's new mission of high-quality and technology-driven development, the firm plans to focus on artificial intelligence, robotics and smart upgrading of various industries in the future.

Edward Au, managing partner of the southern region at Deloitte China, said Shenzhen has received a green light to widen its capital market to help with technology development.

The central authorities hope Shenzhen can become a venture capital investment center with global influence. A series of measures have been launched to lower the threshold for venture capital investors and further optimize their development environment, such as expanding more sources of funding and improving exit channels.

In addition, reforms of the registration-based IPO regime of the ChiNext board and the establishment of a transfer listing mechanism for National Equities Exchange and Quotations companies will also benefit foreign capital looking to invest in the city's fast-growing technology sector, Au said.

He said these moves will provide a market-based platform for nascent technology businesses to obtain necessary financing to thrive, and result in further expansion of the technology ecosystem and the capital market in Shenzhen.

Dave Tai, co-founder of Beeplus, a lifestyle office space operator of many high-tech firms in Shenzhen, added that the central authorities' policies also amplified the city's appeal to international technology talent and professionals.

Tai said preferential policies and financial subsidies－areas in which Shenzhen leads nationwide－are only one aspect of the city's charm, while the innovative and entrepreneurial ecosystems that policies have forged together also carry considerable weight.

He added that the municipal government has worked tirelessly to bring about exchanges between nongovernmental associations and institutions.

"We have received plenty of responses that these events have provided them with abundant opportunities," Tai said.

"The city's ability to attract talent is a vital factor in the sustainable development of our team," he added.