11-10-2017

On December 7, 2012, Xi Jinping visited Qianhai on his first stop of site visit following the end of the Eighteenth National Congress, emphasizing the development of Qianhai was an new opportunity of the Shenzhen Special Economic Zone and the opening up of a new platform for the cooperation between Guangdong, Hong Kong and Shenzhen. Yet, in the past few years, despite the effort on the negotiation of changes in the planned use of site, the involving of the interests of multi-parties continued to be the biggest problem during the conversion of land use from industrial land to commercial land.

Recently, the problem finally ushered in a breakthrough. Following the successful conversion of land use for China Merchants Group, CIMC also announced yesterday that it had signed the Land Consolidation Framework Agreement with Shenzhen Municipal Bureau of Land and the Authority of Qianhai, specifying that the appreciation of land valve, after deducting necessary expenditure, would be split under the ratio 6:4 between the Authority of Qianhai and CIMC before the conversion of land use. With the approval on conversion of land use of the two major landowners in Qianhai, it is expected that other companies holding land reserve in Qianhai will have the opportunity to receive approval on the conversion of land use shortly, further releasing the company’s value. It is recommended that investors take opportunity to invest in companies with Qianhai land reserve.

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