Shenzhen will offer a one-off reward of up to 50 million yuan (US$7.8 million) to financial enterprises that newly register headquarters in the city, an official from the city’s local financial regulatory bureau said at a press conference held at the Civic Center in Futian District on Thursday.

The policy is part of a new set of monetary incentives the city has rolled out to push forward the high-quality development of the city’s financial industry and improve the city’s competitiveness and cohesiveness as a financial center, He Jie, the bureau’s head, said at the conference.

The measures took effect Thursday and will remain effective for five years.

The incentives also apply to eligible securities asset management companies and key financial infrastructure approved by the city government, as per the conference.

Independent fund distributors that establish headquarters in Shenzhen will also be offered a one-off setting-up reward of as high as 5 million yuan.

Microcredit companies, financing guarantee companies, pawnbrokers, financial leasing companies, commercial factoring companies and other firms engaged in all-form financial businesses can receive a maximum reward of 10 million yuan for capital increase.

In addition, the one-off reward for insurance companies setting up their national online business centers in the city can reach 1 million yuan.

The measures have simplified the qualification requirements for the national product research and development centers set up by financial headquarters enterprises and innovative labs to apply for rewards from the city government, and clarified the application criteria of rent subsidies for financial businesses.

The financial industry acts as a pillar that buttresses Shenzhen’s economy. The sector’s added value reached 473.8 billion yuan in 2021, accounting for 15.4% of the city’s GDP, with a tax revenue of 166.2 billion yuan.

The latest report by Global Financial Centers Index showed that Shenzhen is ranked 10th among 119 financial centers around the world.

At Thursday’s conference, government supportive policies on financial technology (FinTech) and venture capital were also released.

Headquarters enterprises refer to head offices that are incorporated and established with an independent legal entity, and exercise management service functions such as investment and holding a controlling share, operation and decision making, centralized sales, and financial settlement towards enterprises in a certain area, according to the China Law and Practice journal.