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The Futian district of Shenzhen, where the city government is located, will focus on its economic structure and modern service industry over the next five years, with special attention given to commercial building development.

The district government spent 350 million yuan ($54.15 million) last year on its service economy. The figure is expected to rise up to 600 million yuan, by 2015, the end of the 12th Five-Year Plan.

And it has a number of projects to work toward that goal, which include a business complex to provide support for the district's concrete jungle, where most of the commercial buildings are located.

The companies the district is looking for are in the finance business, modern logistics, service outsourcing, exhibitions, and creativity. They are being encouraged to set up headquarters in the district, and this comes with a set of incentives to stimulate interest.

The district government has as much as 2 million yuan in subsidizes for anyone who introduces major modern services projects. Anyone key firm setting up corporate HQ in the district qualifies for the same incentive.

Any company recognized by the government who sets up HQ here, along with major logistics and technology-service companies will be given a subsidy of as much as 1 million yuan.

Those who contribute a considerable amount of taxes also qualify for a subsidy of as much as 3 million yuan.

Individual business owners who contribute a large amount to taxes can get a subsidy of up to 1.5 million yuan. Property management companies also qualify for a subsidy of up to 1 million yuan.

But modern service industry and corporate HQ are not the only ones getting local government support, it also goes to companies that get listed or make technological improvements or expand.

Companies with an IPO on the domestic or foreign stock exchanges can get up to 2.2 million yuan in subsidies. Financial institutions that provide innovative services for companies in the Futian district will qualify for a 1-million-yuan award.

Companies in modern services or whose corporate HQ are making a technological or information-oriented upgrade, there is a maximum of 1 million yuan available. And those investing overseas will qualify for awards as well.

Finally, corporate HQ and modern service companies involved in major domestic and international trade events organized by the Futian district will have their exhibition setup costs, as well as promotional and staff costs, covered by the government.

There are ancillary subsidies as well. For example, there is as much as 3 million yuan available for property owner who rent out an office building instead of selling it outright.

Anyone who uses more than 60 percent of a new commercial office building that he or she has built, can qualify for a 1-million-yuan award.

Any agency that has contributed by introducing modern service companies, will qualify for up to 600,000 yuan in subsidies.

To top it all off, there will be 900 apartments available for companies in the modern service industry or for corporate HQ, every year. Other related support facilities such as health care and education are expected to follow.

(China Daily 07/21/2011 page14)