EXECUTIVE SUMMARY

There is no doubt China has the world’s fastest-growing economy and its currency (RMB) has grown significantly over the past years in terms of the volume utilised for trade settlement, finance and investment. According to the latest survey compiled by the Society of Worldwide Interbank Financial Telecommunications (SWIFT), a global provider of secure financial messaging services, RMB payments worldwide have almost tripled in value over the past two years. As of September 2014, the RMB was ranked seventh in the top 20 global payments currencies. Looking forward, due to the increasing usage in Hong Kong, China and other offshore centers, it is predicted to be mature enough to become a reserve currency within the next five years.

In order to cater for expanding settlement volumes, and support the future development of new products and services denominated in RMB, Qianhai in Shenzhen will play a unique role in fostering RMB internationalisation by accelerating the circulation of RMB funds across the border.

In an effort to explore the opportunities and challenges Qianhai poses, Colliers will comment on the positioning of Qianhai in relation to Hong Kong and other factors, such as the Shanghai Free-Trade Zone (SHFTZ), and the latest development policies, such as the newly announced 15% corporate tax and its subject beneficiaries.

Competition is inevitable but characterised by the Central Government supported incentives and policies, Colliers believe the position of Qianhai as a “special zone”, will provide more opportunities rather than challenges in and beyond the Pearl River Delta region.