Zuo Jinping, deputy mayor of the Luohu district government, introduced Luohu's industrial policies and its services for enterprises.

Respected leaders, entrepreneurs and reporters:

Good morning. I am Zuo Jinping of the Luohu district government. I would like to take this opportunity to introduce Luohu's industry policies and its services for enterprises.

Since Luohu was founded 40 years ago, it has always closely followed the steps of the Shenzhen Special Economic Zone (SEZ), adhered to integration of its industrial and urban development, and has created an economy of high quality, high density and strong resilience in the domestic and international circulation that features opening-up and cooperation.

Luohu has a high economic density, and is one of the 100 largest district economies in China. Over the past 10 years, its gross domestic product has increased at an annual average rate of over eight percent. Last year, its economic aggregate neared 240 billion yuan ($36.46 billion). Each square kilometer of land produces a GDP of 3 billion yuan a year. Its economic density ranks the third in the city.

Luohu has an open economy, and it is a pilot zone of opening-up in the Guangdong-Hong Kong-Macao Greater Bay Area. The district has attracted 7,300 foreign enterprises with an accumulated contracted foreign investment value of $15 billion. Particularly, the foreign investment Luohu has been able to attract so far this year increased by more than 100% year-on-year.  

Luohu's economic development is of high quality. It is an ideal destination for establishing an enterprise headquarters. Last year, it was ranked fifth among the top 100 counties and districts that have the best business environment in the country. Last year, it had nearly 700 enterprises each with a registered capital of over 50 million yuan, whose overall registered fund exceeded 310 billion yuan.

Currently, Luohu has three pillar industries of finance, business services and trade and commerce; two characteristic industries of cultural creativity and gold and jewelry and a series of strategic emerging industries, forming a modern industrial system. The development of its pillar industries is stable, the development of its characteristic industries is of high quality, and the development of its emerging industries is fast. 

First, the development of its pillar industries is stable.

Finance is its largest industry, accounting for nearly 40% of its GDP. The number of licensed financial agencies ranks second in the city. The overall asset value of its financial industry accounts for one-third of the city total, and its added value about one quarter.

Luohu is a big district on the city's trade and commerce map. It is the core zone of the international consumption center city that Shenzhen is building. The added value of Luohu's trade and commerce accounts for more than 20% of its GDP. Its total retail sales of consumer goods have ranked second in the city for many years. With 7.9% of the city's population, Luohu contributed 14.1% of consumption, and per capita retail sales of consumer goods are ranked first among all districts in the city. Luohu will construct a whole-district consumption pattern featuring "one-river-six-circles", and its Dongmen business area has been designated as a pilot project of national high-grade pedestrian streets. 

Luohu is also a gathering area of business services. The number of its business service enterprises above designated size ranks second in the city. Three of the world's four major accounting firms have operations in Luohu. Its business services industry has kept growing at a double-digit rate for many years consecutively, and accounts for seven percent of its GDP, becoming a new engine driving its quality economic growth. 

Second, the development of its characteristic industries is of high quality. 

Shuibei-Buxin gold and jewelry gathering area is the largest gold and jewelry base in the country, developing a comparatively large and sound industrial system, occupying an important status in China's jewelry industry. China is a weathervane of the world's jewelry industry, in which Shuibei has the key role.

Luohu has profound cultural resources. The scale of its cultural creativity industry exceeds 10 billion yuan, and the number of its enterprises above designated size in cultural industry is now 500, about one-eighth of the city's total. Some national and provincial-level cultural creativity industrial parks in Luohu have become new highland for its cultural industry development.

Third, the development of emerging industries in Luohu is fast.

Since 2017, Luohu has planned the building of the Dawutong emerging industrial belt according to its own geographic strengths and industrial characteristics. The key is to develop the latest generation of information technology, artificial intelligence, life and health, new materials and strategic emerging industries. Luohu now has 310 national high-tech enterprises, and the annual added value of its emerging strategic industries is 15 billion yuan.

These achievements should be attributed to the hard work of the Luohu people and the governments of various levels over the past 40 years. Now, with the strong support of favorable policies, Luohu is facing new opportunities and standing on a new start point. The district is seeking renewal through urban renovation and industrial development. 

Luohu implements the guiding principles of the speech made by General Secretary Xi Jinping at a grand gathering marking the 40th anniversary of the establishment of the Shenzhen Special Economic Zone (SEZ); Luohu seizes the multiple opportunities created by the construction of the Greater Bay Area, the pilot zone for socialism with Chinese characteristics, and the implementation of comprehensive authorization pilot reforms, adheres to new development concepts and requirements of quality development. The district is carefully drafting its 14th Five-Year Plan (2021-25) for industrial development, and is committed to forming a new industrial development pattern featuring "one corridor, two zones and three belts", developing headquarters economy and its four pillar industries and two characteristics industries.  

Industrial policies are important means guiding industrial development, promoting industrial upgrading and restructuring and building modern industrial system. Luohu has revised its regulatory methods on special funding for industrial restructuring and upgrading, and the new policies can be called "1 plus 3" for short, as they consist of one regulatory method and three enforcement regulations. According to these, Luohu provides comprehensive services to enterprises in the fields of land, fund, talent, research and development and business environment. The new policies have three characteristics:

First, the support is getting stronger all the time. Luohu's pro-industry fund will be over 1 billion yuan this year, five times more than that of 2012. Its fund support for most projects is the strongest among all districts. For example, the subsidy for headquarters enterprises to purchase office buildings has been increased from 60 million yuan to 80 million yuan, highest in the city.

Second, the policies have become more pertinent. Luohu mainly supports the key points of key projects and industries, which include all of the aforementioned aspects of its key industries, as well as innovation and construction and decoration.

Third, the policies cover the whole process of enterprises' growing, with each stage having its corresponding supportive measures. 

As for the three enforcement regulations, we try our best to attract investment and talents. We give various kinds of support for the enterprises in seven fields such as finance and scientific and technological innovation. The highest award for financial agencies coming to Luohu is 50 million yuan.

As for the promotion of quality development, we provide support to enterprises throughout their lifecycle. We support technological upgrading, efforts to be listed on the stock market and mergers and acquisitions, research and development, financing and brand building in 10 major industries of Luohu. The highest award for headquarters enterprises' executive team is 10 million yuan, for financial and technological projects is 20 million yuan, and new forms of trade and commerce 10 million yuan. 

As for the optimization of business environment, we always provide thoughtful care. We support industrial parks, talents attraction, industrial activities, intellectual property rights and standardization strategies, energy saving and emission reduction and other supporting services. The subsidy for organizing or hosting important activities is 2 million yuan, for the creation of new innovation incubators is 20 million yuan.

Here are some examples:

Enterprise A, a commerce headquarters enterprise, pays 100 million yuan in tax contributing 23 million yuan to the district's finances. It has spent 100 million yuan buying office buildings in Luohu. This enterprise is entitled to the following support: 

10-million-yuan subsidy from the Luohu government for its registration in the district

20-million-yuan subsidy for its purchasing of office buildings (20 % of the housing price)

5.75 million yuan for its executive team (25% of its contribution to the district's finances)

After it has been operating in Luohu for a year:

Its executive team can receive an award as high as 2 million yuan

An award for its business growth as high as 1 million yuan

If the company is listed on the stock market, it can receive an award of 2 million yuan

If the company wins industrial prizes, for instance the top 20 of chain enterprises in the country, it can obtain a subsidy of 1 million yuan;

It can also receive various kinds of support if it obtains more patents, increases input in technological innovation, obtains bank loans, securitizes its IPR, renovates its commercial property and increases its brand building. 

Good industrial policies should be supported by good enterprises service systems. Luohu has built up many such systems and adapted them to the needs of the times and the enterprises so as to provide whole-process whole-period services for enterprises, becoming a better service provider. The following are the concrete actions:

Luohu set up an enterprise service center this year. Companies can apply for all of the government supports they are entitled to from the center, which also makes the government's information disclosure related to the enterprises more convenient. 

Luohu set up an enterprise service network, which connects all relevant departments and sub-district offices, supervised by senior officials of the district government. The network aims to help address the enterprises’ concerns in a timely manner.

We also built a bridge docking system meeting the needs of enterprises, government departments and financial agencies, as well as hosting various kinds of events on training, and research and development.

We founded an enterprise service platform that integrates the functions of information disclosure, fund application, and land and financial policies that aims to provide smart services to companies, and make the services conveniently accessible to the companies. The 2.0 version of the platform will be launched soon.

Two new functions of platform are the map, which Fan Defan, deputy district mayor of Luohu, has introduced, and policy-based calculators through which the enterprises can know what preferential and supporting policies they can enjoy.

We created a "merging" ecology for the development of the enterprises, coordinating information disclosure and development of different companies in a bid to help them form a healthy industrial and business 

Dear entrepreneurial friends,

Shenzhen is a land of dreams, and Luohu is the harbor where the dream starts to be fulfilled.

Shenzhen is a city of wonders, and Luohu is a place of promise for your development.

Welcome to Luohu to win the future together.

Thank you all.