Provisional Measure of Shenzhen Municipality on the Authority

ofQianhai Shenzhen-Hongkong Modern Service Industry

Cooperation Zone

Chapter One General Provisions

Article 1 In order to innovate the administration system and mechanism of Qianhai Shenzhen-Hongkong
Modern Service Industry Cooperation Zone (hereinafter referred to as Qianhai Cooperation Zone), and
to standardize the operation of the Authority of Qianhai Shenzhen-Hongkong Modern Service Industry
Cooperation Zone (hereinafter referred to as Qianhai Authority), this Measure is formulated in
accordance with Regulations of Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone
of Shenzhen Special Economic Zone (hereinafter referred to as Regulations).

Article 2 Qianhai Authority is the statutory administration body of Qianhai Cooperation Zone established
in accordance with Regulations. Qianhai Authority performs relevant duties of administration and public
service in accordance with the relevant provisions of Regulations and this Measure.

Article 3 Qianhai Authority operates under the leadership of municipal government (chnh quyn thnh
ph), upholding (support) the idea of diligence (kho st c bit), standardization (tiu chun ho),
efficiency, incorruption and integrity (, and adhering to the principle of innovation, marketization and being
in line with international convention. Qianhai Authority is under overall planning and advances as a whole,
and is devoted to promoting the development and openness of Qianhai Cooperation Zone, which aims to
build Qianhai Cooperation Zone as model zone where creative cooperation between Guangdong and Hong
Kong in the field of modern service industry is typical, and as the critical base of the national modern service
industry and as the center of producer service with powerful radiating capacity.

Article 4 Qianhai Authority shall explore a mechanism with clear duties, scientific decision and efficient
operation, and shall improve its regulation capacity, provide excellent service and create a friendly
environment beneficial to the development of modern service industry.

Article 5 Relevant departments of municipal government and the district government with jurisdiction shall
support and cooperate with Qianhai Authority according to their respective duties so as to advance the
development and construction of Qianhai Cooperation Zone.

Chapter Two Duties

Article 6 Qianhai Authority is responsible for the development and construction, operation and
administration, investment promotion, mechanism innovation, overall coordination and other items of
Qianhai Cooperation Zone, specific duties of Qianhai Authority are:
(1) Organizing to formulate development strategies and plan of Qianhai Cooperation Zone, and organizing
to enforce them when they are approved in accordance with the provided procedure;

(2) Organizing to formulate industry development guidance directory and entry criteria of Qianhai
Cooperation Zone, and organizing to enforce them thereafter when they are approved under established
procedure;

(3)Organizing to formulate and implement rules and guidelines relating to the promotion of modern service
industry within Qianhai Cooperation Zone;

(4) Organizing to draft special provisions on the application of the municipal rules and regulations in Qianhai
Cooperation Zone, and submitting them to the municipal government for approve in accordance with
statutory procedure;

(5) Being responsible for the planning administration of Qianhai Cooperation Zone as stipulated in this
Measure;

(6) Being responsible for the land administration and land banking of Qianhai Cooperation Zone as stipulated
in this Measure;

(7) Being responsible for the land development and the construction, operation and administration of the
infrastructure and public service facility of Qianhai Cooperation Zone

(8) Undertaking the task of investment and financing of construction of Qianhai Cooperation Zone and
participating in strategic investment of major projects;

(9) Being responsible for the administration of approval, authorization, filing or application transfer of
investment projects (including fixed-asset investment projects) in Qianhai Cooperation Zone, excluding
financial industry projects;

(10) Being responsible for investment promotion and propaganda promotion of Qianhai Cooperation Zone;

(11) Being responsible for external cooperation and communication of Qianhai Cooperation Zone;

(12) Coordinating the performance of respective duties of relevant municipal departments and the district
government with jurisdiction in Qianhai Cooperation Zone;

(13) Being responsible for the administration, service, and coordination matters of Shenzhen Qianhai Bay
Free Trade Port Zone, and coordinating port authorities to develop their business;
(14) Organizing to formulate and implement internal systems, such as personnel system, compensation
system and performance management system of Qianhai Authority;

(15) Other duties vested by the municipal government.

Article 7 As for the administration matters which are decentralized by the competent authorities at or above
the provincial level in the Qianhai Cooperation Zone, they shall be implemented by the relevant
administration departments of the municipal government or Qianhai Authority in accordance with the
relevant provisions on decentralization within the area of Qianhai Cooperation Zone.

Article 8 The society administration functions of Qianhai Cooperation Zone, such as environment
protection, labor management, city appearance and environmental sanitation, public security, firefighting,
and safety production, shall be under the responsibilities of the district government with jurisdiction and
relevant municipal departments.

Qianhai Authority shall positively coordinate relevant municipal departments to advance the innovation of
society administration system of Qianhai Cooperation Zone and fully improve the level of administration.

Article 9 According to the development and management requirement of Qianhai Cooperation Zone,
Qianhai Authority may submit its requirement of adjusting the scope of the function of relevant municipal
departments in Qianhai Cooperation Zone to the municipal government.

Chapter Three Operation Mechanism

Article 10 Qianhai Authority implements the system of director responsibility, the director is appointed by
the municipal government with term of 5 years. The director is fully responsible for the business of Qianhai
Authority.

Article 11 Deputy director of Qianhai Authority shall be nominated by the director, and then be appointed
by the municipal government according to the provided procedure.

Qianhai Authority may hire senior manager from the domestic and oversea professionals according to its
needs.

Article 12 Qianhai Authority operates under the leadership of the municipal government, its annual work
report shall be made publicly after being approved by the municipal government.

Article 13 The following material matters shall be implemented after being studied, discussed and
commented at the directors office meeting and being approved by the municipal government according to
the provided procedure:
(1) Investment plan and financing plan of Qianhai Cooperation Zone;

(2) The development strategies, plan and entry criteria and relevant administration systems of Qianhai
Cooperation Zone;

(3) Financial budget of Qianhai Cooperation Zone and annual work plan, financial budget report/final
financial report of Qianhai Authority;

(4) Compensation assignment plan, pension plan and the compensation standard and incentive issues of the
management staff of Qianhai Authority;

(5) Other material matters which shall be determined by the municipal government.

Article 14 Qianhai Authority may set up necessary consulting institution, or hire domestic and oversea
celebrities, specialists and scholars to provide advisory opinion about development of Qianhai Cooperation
Zone.

Article 15 Qianhai Authority may take advantage of the land, business assets and financial funds of Qianhai
Cooperation Zone to establish a multi-tiered and multi-channel investment and financing system to raise
fund for the development and construction of Qianhai Cooperation Zone.

Qianhai Authority may establish Shenzhen Qianhai Investment and Development Holdings Co., Ltd. in
accordance with law which is responsible for the primary land development, infrastructure construction and
investment of major projects. Qianhai Authority shall perform its duty as contributor in accordance with law.

Revenue gained by Qianhai Authority as contributor shall be mainly used for the development and
construction of Qianhai Cooperation Zone and other purposes stipulated by the municipal government.

Chapter Four Planning Construction Administration

Article 16 The land of Qianhai Cooperation Zone is owned by the State, and the system of term and
compensated use of land shall be executed. Qianhai Authority, on behalf of the municipal government, is
responsible for the supervision, administration and development of land of Qianhai Cooperation Zone.

Article 17 Qianhai Authority is responsible for organizing to compile annual land supply plan and annual
standby land plan of Qianhai Cooperation Zone within the scope of the land supply plan and standby land
plan of Shenzhen, which will be implemented after being approved by the municipal government according
to the provided procedures.
Article 18 The statutory plan of Qianhai Cooperation Zone shall be compiled jointly by Qianhai Authority
and the municipal planning and land using department, which will be implemented after being approved by
the municipal government. Expect overall planning of Qianhai Cooperation Zone, Qianhai Authority shall
organize to compile other kinds of planning, which will be implemented after being approved by the
municipal government.

Article 19 Qianhai Authority shall be responsible for reserve administration of state-owned land of Qianhai
Cooperation Zone.

Article 20 Qianhai Authority may develop and use the state-owned land within Qianhai Cooperation Zone,
which has not been yet transferred, by the means of land usage right transfer, assignment, lease or
cooperation in accordance with provisions.

Land assignment shall comply with relevant provisions and will be implemented by Qianhai Authority after
being approved by the municipal government. Where the land is used by transfer or lease, conditions of
transfer and lease shall be stipulated by Qianhai Authority, which shall be included into the municipal unified
platform after being approved by the municipal government. Qianhai Authority shall be responsible for
examination of the buyer's qualifications. Where the land is used by cooperation, Qianhai Authority shall
propose plans and implement them after being approved by the municipal government.

Under the premise of having no influence on the project construction and industry development, Qianhai
Authority may use the state-owned reserve land of Qianhai Cooperation Zone to start business such as
temporary land lease. Revenue gained therefrom shall be used to pay the daily administration expense of
Qianhai Cooperation Zone.

Article 21 Where any state-owned land within the area of Qianhai Cooperation Zone is to be transferred,
Qianhai Authority shall organize the transfer according to the transfer plan on behalf of the municipal
government. And it shall be included into Shenzhen land and real estate exchange platform to be transferred
publicly.

Article 22 Qianhai Authority shall be responsible for organizing the examination of change of ownership,
nature, development intensity of land of Qianhai Cooperation Zone which has already been transferred. Such
changes will be implemented after being approved by the municipal government according to the provided
procedure.

Article 23 Qianhai Authority shall act as the competent department of government investment for any
government investment projects within the area of Qianhai Cooperation Zone, and shall perform its duty and
carry out management in accordance with management procedure of government investment projects as
stipulated by relevant regulation and rule of Shenzhen. As for any government investment projects which
are approved by Qianhai Authority, Qianhai Authority shall file them to the competent authorities at the
municipal level after the approval.

Article 24 Any construction project within the area of Qianhai Cooperation Zone, which meets the
conditions of bid, shall be included into the unified bidding platform at the municipal level.

Article 25 Qianhai Authority may entrust the relevant resident agency of the municipal planning and land
using department to undertake the land planning and management of Qianhai Cooperation Zone.

Competent administrative departments at the municipal level, such as construction department and
environment protection department, shall entrust the working office or resident agency which is established
in Qianhai Cooperation Zone with full empowerment, to undertake relevant administrative work such as
construction and environment protection.

Article 26 When Qianhai Authority compiles various plans and researches, it may determine the
procurement method and procurement condition according to its needs; and after the preliminary work of
bid is done, the procurement shall be processed at the municipal unified government procurement platform.

Article 27 Where trans-region or cross-region project needs to occupy land within Qianhai Cooperation
Zone, or may cause adverse influence on development of Qianhai Cooperation Zone, an approval from
Qianhai Authority shall be obtained in advance.

Chapter Five Public Service and Administration

Article 28 Qianhai Authority shall establish a one-stop service center in Qianhai Cooperation Zone, to
handle relevant administrative permission and public service matters in the Qianhai Cooperation Zone
uniformly.

Article 29 Relevant municipal departments and the district government with jurisdiction shall dispatch
personnel or institution to the one-stop service center according to the development and management needs
of Qianhai Cooperation Zone, to provide convenient one-stop service for the natural person, legal person
and other organizations in Qianhai Cooperation Zone. The dispatched personnel and institution shall accept
the instruction and supervision of Qianhai Authority.

The municipal government may make adjustment and arrangement of the dispatched personnel and
institution from time to time according to the development and construction needs of Qianhai Cooperation
Zone.

Article 30 Relevant municipal departments and the district government with jurisdiction shall entrust the
personnel or the institution dispatched to the one-stop service center with full empowerment, and simplify
the approval process to make sure that relevant licensing items can be done independently in Qianhai
Cooperation Zone.

Article 31 Qianhai Authority shall file the approved items to relevant municipal departments in accordance
with relevant provisions after Qianhai Authority has made administrative license decisions on the items
which are authorized.

Article 32 Qianhai Authority shall strengthen the construction and management of the public service
platform in the Qianhai Cooperation Zone, and innovate the administration system and operation rules in the
field of public administration.

Article 33 Qianhai Authority shall positively coordinate and push the reform and innovation in the fields of
public service, such as customs clearance, education, medical, outbound travel on public duty, and social
security to provide convenience for the work and life of people in Qianhai Cooperation Zone and to create
good environment of public service.

Article 34 The municipal Taxation Bureau, market surveillance, police office, urban administration
enforcement office, civil administration and other departments shall provide excellent and efficient public
service to the natural person, legal person and other organizations in Qianhai Cooperation Zone according
to their respective duties and accept the coordination of Qianhai Authority.

Article 35 Qianhai Authority may absorb social capital by various means and conduct market-oriented
operation to jointly provide public services and products, such as water supply, energy guarantee, internet,
communication network and broadcast network, with international standard in Qianhai Cooperation Zone.

Article 36 Qianhai Authority may cooperate with relevant public service institutions in HongKong and
actively introduce public service institutions in HongKong to set up service platform in Qianhai Cooperation
Zone.

Chapter Six Industry Promotion

Article 37 Qianhai Authority shall actively encourage and guide the development of Qianhai Cooperation
Zone, based on high-end guidance, focusing on quality of projects, paying attention to the soft power of
enterprise, to promote the development of the modern service industry in Qianhai Cooperation Zone.

Article 38 Together with relevant municipal departments, Qianhai Authority, shall actively support the
development of creative business of modern service industry in Qianhai Cooperation Zone.
Article 39 With the support of relevant national and provincial departments, Qianhai Authority shall actively
carry out Mainland and Hong Kong Closer Economic Partnership Arrangement in Qianhai Cooperation
Zone, play a leading and exploratory role.

Article 40 Qianhai Authority shall formulate guidance list and entry criteria according to the industry
planning of Qianhai Cooperation Zone, which will be public after being approved by the municipal
government according to the provided procedure.

The approval of establishment and change of foreign-invested non-financial enterprises and foreign-invested
projects in Qianhai Cooperation Zone shall be made by Qianhai Authority within the extent of competence
of municipality with independent planning status, which shall be filed to the municipal administrative
department of foreign investment.

The approval of establishment, change of foreign-invested enterprises and foreign-invested projects which
are not stipulated in the above clause shall be made in accordance with relevant provisions by the municipal
administrative department of foreign investment.

Article 41 Qianhai Authority shall formulate relevant rules and guidance promoting the development of
modern service industry and enforce them in Qianhai Cooperation Zone in accordance with law.

Article 42 Together with relevant municipal departments, Qianhai Authority shall actively explore to
establish a business registration system in Qianhai Cooperation Zone, which is in line with the international
common rule and practice.

Article 43 Qianhai Authority shall actively coordinate relevant municipal departments to optimize the tax
collection system and process in Qianhai Cooperation Zone and create tax environment beneficial to the
development of modern service industry.

Article 44 Qianhai Authority shall actively cooperate with relevant municipal departments, to put forward
statistical system of modern service industry which is in line with the international common rule and practice
for the realization of independent compiling of the local GDP.

Chapter Seven Fiscal Administration

Article 45 Qianhai Authority has a relatively independent fiscal administration power. Qianhai Authority is
responsible for compile fiscal budget of Qianhai Cooperation Zone and the appropriation budget of Qianhai
Authority, which will be included into the municipal annual fiscal budget after being examined by the
municipal government and will be implemented by Qianhai Authority after being approved by the municipal
congress.
Article 46 The municipal fiscal department shall appropriate the sum of money which is undertaken by the
municipal finance in accordance with the approved annual budget in time and in full. Qianhai Authority shall
use the above funds on an overall basis and accept the supervision of relevant supervisory organization
according to the provisions.

Article 47 Qianhai Authority shall actively explore market-oriented operation model of land use and public
service products of Qianhai Cooperation Zone and gradually realize the goal of raising and using budgetary
resources on its own.

Article 48 Revenue gained from the transfer of usage right of state-owned land of Qianhai Cooperation Zone
shall be submitted to the state treasury, after the policy-based rigidity expenditure is deducted, all the
balance shall be returned to Qianhai Authority. Such balance shall be used for the development and
construction of Qianhai Cooperation Zone according to law.

Qianhai Authority shall establish accounting system of land development cost and revenue and accept the
supervision of relevant supervisory organization.

Article 49 Qianhai Authority shall establish financial administration system with separate control of
revenues and expenditures and strictly enforce national, provincial and municipal regulations on finance.

Together with municipal financial department, Qianhai Authority shall formulate administration measures
on use of fiscal funds, which shall clarify the scope and standard of use of fiscal funds in order to use and
administrate those funds normatively.

Chapter Eight Human Resource and Compensation

Article 50 Qianhai Authority implements human resource system of the nature of enterprization and
marketization, and has independent right to make employment decision. Qianhai Authority may decide the
institution setting, post setting, employment, compensation standard and other items at its own discretion
within the range of the number of paid employees, number of leadership positions and the total amount of
compensation determined by the municipal government, and accept the supervision of departments of public
sector reform, organization and personnel, finance and discipline inspection and supervision.

Article 51 Qianhai Authority shall formulate supporting systems for human resource management, such as
compensation management, pension management, employee recruitment, job competition (employment) ,
performance appraisal based on the principle of science and reason, high efficiency, openness and equality,
and competition and merit.
Qianhai Authority shall submit the systems of compensation management and pension management
prescribed in the preceding paragraph to the municipal government for decision, thereafter file to the
municipal human resources and social security department.

Article 52 Qianhai Authority implements market-oriented compensation system, where the total amount of
compensation is determined by the municipal government by taking the market price, the compensation level
of domestic functional zone of the same nature and other elements as reference. Qianhai Authority may also
make adjustments according to the completion status of task and the change of market price.

Article 53 Qianhai Authority shall explore and establish performance evaluation and stimulant mechanism
within the scope of the total amount of salary determined by the municipal government based on the principle
of goal orientation and combination of rewards and punishments.

Article 54 Qianhai Authority shall focus on the needs of labor required by long-term development and
improve the employees work skill and quality by strengthening the training management. Training fees
shall be independently listed in the annual budget.

Article 55 Qianhai Authority shall enter into employment contracts with its employees.

Article 56 Employees of Qianhai Authority shall join the social insurance, including endowment insurance,
medical insurance, unemployment insurance, work-related injury insurance and maternity insurance in
accordance with relevant municipal provisions, and implement housing accumulation fund system and
pension system in accordance with relevant provisions.

Chapter Nine Supervision and Administration

Article 57 Qianhai Authority accepts the supervision of special supervisory organization in accordance with
law.

Supervisory organization may accept the commission of the units with function of supervision and
inspection, exercise correspondent power.

Article 58 Qianhai Authority shall make its administrative information public in accordance
with Regulations on the Disclosure of Government Information of People's Republic of China and Rules of
Shenzhen Municipality on the Disclosure of Government Information.

Article 59 Senior manager of Qianhai Authority shall report to the municipal government about his income
situation in the previous year in the first quarter of each year.
Article 60 Where Qianhai Authority and the employees thereof fail to perform duty or perform duty
improperly, liability shall be pursued according to the relevant provisions and contracts. where a crime is
involved, it shall be transferred to the judicial authority for handling.

Chapter Ten Supplemental Provisions

Article 61 Any administration issue within Qianhai Cooperation Zone which is not stipulated in this Measure
shall be undertaken by relevant municipal departments and district government with jurisdiction according
to their respective duties and functions.

Qianhai Authority may formulate correspondent administration rules on public service, administration and
planning construction in accordance with the revelant provisions of Regulations and this Measure, and
execute them within Qianhai Cooperation Zone.

Article 62 This Measure shall go into effect as of October 8, 2011.