TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 130

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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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