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of intent has been signed on 30 of these projects so far
and 60% of the potential investors displaying an interest
were from Hong Kong. He estimated the overall value of
investment in Shanghai to reach about HK$1,500 million
this year.
Tax relief for investors in Hainan
A
4.
According to Ta Kung Pao on 24 March, the Director
of the Hainan Island Administration, LEI Yu, has declared
that enterprises involving foreign investment in the
island will be exempt from income tax (15%) during the first
two years of their operation (the exceptions to such relief
are oil and rare metals industries). Commercial and
industrial taxation on such enterprises may either be reduced
or totally waived during the first three years of opeartion.
LEI pointed out that the charges for land use in Hainan
would be lower than in Shenzhen Special Economic Zone. He
disclosed that the Hainan Island Administration has authority
to approve any investment in the island up to HK$25 million.
New regulations for Shenzhen SEZ
5.
A solicitor and legal adviser to the Shenzhen Special
Economic Zone Development Corporation, MAO Jianzhen, has
revealed that the forthcoming Guangdong Provincial People's
Congress will enact laws and regulations covering the setting
up of branch offices of foreign banks, the protection of foreign patent rights, the work of the Shenzhen branch of the Foreign Economic and Trade Arbitration Commission of
the China Council for the Promotion of International Trade,
and ownership rights over residential property in the SEZ.
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