Document of

Xicheng District People’s Government of Beijing Municipality

The Administrative Committee of Zhongguancun Science Park

Beijing Financial Street Services Bureau

X.H.G.F. [2018] No.6

Xicheng District People’s Government of Beijing Municipality

The Administrative Committee of Zhongguancun Science Park

Beijing Financial Street Services Bureau

Notice on the Measures in Support of the Construction of Beijing FinTech and Professional Service Innovation Demonstration Zone (Xicheng District)

All committees, offices and bureaus of the District Government, sub-district offices, and related units,

The Measures in Support of the Construction of Beijing FinTech and Professional Service Innovation Demonstration Zone (Xicheng District) is hereby distributed for your earnest compliance.

Xicheng District People’s Government of Beijing Municipality     The Administrative Committee of Zhongguancun Science Park

Beijing Financial Street Services Bureau

December 7, 2018

(For public disclosure)

The Measures in Support of the Construction of Beijing FinTech and Professional Service Innovation Demonstration Zone (Xicheng District)

The Beijing FinTech and Professional Service Innovation Demonstration Zone (hereinafter referred to as “the Demonstration Zone”) will be constructed at a faster pace in the Xicheng Park of Zhongguancun Science Park. The purpose of the Demonstration Zone is set to better serve and support the construction of the National Financial Management Center, the National Sci-tech Innovation Center and the Zhongguancun National FinTech Innovation Center, and create a secure, orderly FinTech ecology. The Measures in Support of the Construction of Beijing FinTech and Professional Service Innovation Demonstration Zone (Xicheng District) (hereinafter referred to as “the Measures”) is hereby developed according to the Beijing Municipal Plan to Expedite the Development of FinTech (2018–2022) (ZH.K.Y.F. [2018] No.40) and the Guiding Opinions on Innovative FinTech Development in Beijing (J.J.R. [2018] No.212) and in the light of actual conditions.

Article 1       The support targets of the Measure include: FinTech enterprises and professional service agencies

i. FinTech enterprises: enterprises engaged in R&D and application of the cutting-edge technologies such as artificial intelligence (AI), big data, interconnection technologies, distributed technologies, and security technologies in the financial sector.

ii. Professional service agencies: institutions that provide financial institutions and FinTech enterprises with professional services such as information, legal advice, financial management, intellectual property, human resources, and business incubators; research institutes and industry associations in the FinTech field; and building operators that provide property management services for FinTech enterprises and professional service agencies.

iii. The enterprises and agencies entitled to the support of the Measure shall conform to the definition of core functions of Beijing as the capital, go through the registration and taxation formalities within the Demonstration Zone (Xicheng District), and operate in compliance with laws and regulations. Besides, only high-tech enterprises which are registered in the Xicheng Park of Zhongguancun Science Park (including national high-tech enterprises and Zhongguancun high-tech enterprises) are eligible to enjoy the supporting policies of the Administrative Committee of Zhongguancun Science Park.

Article 2       FinTech enterprises and professional service agencies are supported to settle in and seek for further development in the Demonstration Zone

i. Financial subsidies are granted to the key FinTech enterprises that are newly incorporated in or moved to the Demonstration Zone according to their comprehensive contributions. A subsidy worth RMB2 million shall be given to an eligible company with a paid-in capital ranging between RMB50 million (inclusive) and RMB100 million (exclusive); a subsidy worth RMB5 million to a paid-in capital ranging between RMB100 million (inclusive) and RMB500 million (exclusive); a subsidy worth RMB10 million to a paid-in capital ranging between RMB500 million and RMB1,000 million (exclusive); a subsidy worth RMB20 million to a paid-in capital ranging between RMB1,000 million (inclusive) and RMB3,000 million (exclusive); and a subsidy worth RMB50 million to a paid-in capital no less than RMB3,000 million. For the already established FinTech enterprises, a paid-in capital increase ranging between RMB100 million (inclusive) and RMB1,000 million (exclusive) will get a one-time subsidy worth RMB1 million based on the comprehensive contributions; and a paid-in capital increase no less than RMB1,000 million will get a one-time subsidy worth RMB10 million based on the comprehensive contributions. For the newly-fostered key FinTech enterprises that are stationed in the Demonstration Zone, each of them will receive a subsidy that accounts for 10% of their paid-in capital or investment amount but won’t exceed RMB10 million. The subsidy funds are paid in three years at a ratio of 40%, 30%, and 30%, respectively.

(Support from Xicheng District Government)

ii. Financial subsidies for purchasing or renting office premises are granted to the key FinTech enterprises and professional service agencies that are newly incorporated in or moved to the Demonstration Zone. For an office premise purchased, a subsidy of RMB1,500 per square meter will be given. Where an enterprise or agency rents its office premise, the Xicheng District Government will comprehensively assess the enterprise or agency according to their comprehensive contributions, market position, future influence and other factors, and decide whether to grant it a subsidy at 30% or 50% of its actual rents. It should be noted that the subsidy won’t exceed three years, and that the total amount of such subsidy won’t exceed RMB50 million. ,

(Support from Xicheng District Government)

iii. Qualified FinTech enterprises are supported to apply for relevant financial business permits or financial licenses. A single enterprise that obtains a business permit or license will be granted a one-time subsidy worth RMB500,000.

(Support from the Administrative Committee of Zhongguancun Science Park)

iv. Financial rewards are given to the enterprises that have made outstanding contributions. The FinTech enterprises and professional service agencies that made outstanding contributions to the economic development of Xicheng District in the previous year will be named as outstanding contributors, and presented with the financial incentives in accordance with the provisions of the Measures for Developing Key Service Enterprises in Support of Sophisticated Industries in Xicheng District.

(Support from Xicheng District Government)

Article 3       FinTech enterprises are supported to enhance their independent innovation capabilities

i. FinTech enterprises are supported to transform such critical technologies as AI, big data, interconnection technologies, distributed technologies, and security technologies into reality or commercial application. A project that proves a technology is feasible will receive the financial support that doesn’t go beyond 30% of its total input. It should be noted that the financial support won’t exceed three years in a row, and the accumulative amount won’t run over RMB10 million. A project that brings a technology into commercial use will get the financial support that doesn’t go beyond 30% of its total input. It should be noted that the financial support won’t exceed three years in a row, and the accumulative amount won’t run over RMB30 million.

(Support from the Administrative Committee of Zhongguancun Science Park)

ii. Where FinTech enterprises win the financial support earmarked for the sci-tech and industrialization projects from the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and other authorities, they will be given a fund reward which doesn’t exceed the financial support they have won. The FinTech enterprises that receive the financial support earmarked for the sci-tech and industrialization projects from the Beijing Municipal Science & Technology Commission and the Administrative Committee of Zhongguancun Science Park will be granted a fund reward which doesn’t go beyond a half of the support they have won. It should be noted that the total reward for a single project won’t exceed RMB1 million, and that for a single enterprise won’t exceed RMB3 million.

(Support from Xicheng District Government)

iii. FinTech enterprises are supported to set up R&D institutes. Where an enterprise builds a R&D institute, and gets it licensed and financially awarded by a State or municipal authority, the enterprise will receive a fund reward which accounts for a half of the financial support it has won and doesn’t go beyond RMB1.5 million in total. An engineering (technological) research center or a key (engineering) lab, if founded and licensed by the State or Beijing Municipality, will get a one-time financial support worth RMB200,000 or RMB100,000, respectively.

(Support from Xicheng District Government)

iv. FinTech enterprises and professional service agencies are supported to preside over or participate in the formulation of technical standards. Where a FinTech enterprise or a professional service agency presides over or participates in the formulation of an international standard, national standard, or industry standard in the FinTech field (it must come out one of the top five drafters), a one-time subsidy worth RMB1 million, RMB0.4 million, or RMB0.2 million will be granted to it upon the release of the standard. For FinTech companies and professional service agencies that serve on technical commissions of international standardization administrations, their technical sub-technical committees, or secretariats of related working groups in the FinTech field, there will be a one-time subsidy worth RMB300,000, RMB200,000, or RMB100,000 for each of them. As to FinTech companies and professional service agencies that serve on technical commissions of national standardization administrations, or secretariats of their technical sub-technical committees in the FinTech field, there will be a one-time subsidy worth RMB150,000 or RMB100,000 for each of them.

(Support from Xicheng District Government)

Article 4       The financial regulatory authorities are invited to set up their experimental areas in the Demonstration Zone, and vigorous efforts are made to apply FinTech into more scenarios.

i. Xicheng District Government will actively facilitate the financial regulatory authorities, the financial industry associations, and other organizations in setting up in the Demonstration Zone their experimental areas where new financial regulatory policies will be rolled out on a trial basis before their extensive execution. At the same time, it will actively cooperate with the pilot run of FinTech policies on experimental application of FinTech, trial run of financial license, creative financial regulations, and other aspects in favor of regulating financial innovation.

(Support from Xicheng District Government)

ii. FinTech enterprises are supported to provide services for financial regulators and financial institutions, apply such cutting-edge technologies as AI and blockchain into exemplary application, and improve the efficiency and convenience of financial services. If a FinTech enterprise signs a contract on technology application or a procurement agreement with a financial regulator or a financial institution, the Administrative Committee of Zhongguancun Science Park will provide the enterprise with a financial support which takes a 30% share of the contract value. It should be noted that the support for a single project won’t exceed RMB5 million. In addition, the enterprise will also get a financial support equal to the contract value from Xicheng District Government.

(Support from the Administrative Committee of Zhongguancun Science Park and Xicheng District Government)

Article 5       Xicheng District Government will support FinTech talents in seeking for better career development, and provide quality service and other guarantee for the introduction and training of outstanding professional

i. A green track will be opened up to introduce high-caliber FinTech talents, and convenience be provided in management of personnel files, renewal of social security and other insurances, application for work and residence permits, and issue of APEC business cards.

(Support from Xicheng District Government)

ii. Medical, educational, housing and other public resources available in the District will be pooled together to establish public service platforms and recruit professional teams, so that employees of FinTech enterprises and professional service agencies can have access to quality, efficient services that cover medical care, children’s education, housing, and other aspects.

(Support from Xicheng District Government)

iii. Xicheng District Government will assist excellent FinTech talents in getting rewarded by or included in the talent pools of the State, Beijing Municipality, the Administrative Committee of Zhongguancun Science Park, Xicheng District, and recommend them as candidates for senior engineers (rank of professor) through the express promotion track exclusive for professional technical titles. The talents who have made important contributions to the District will be rewarded according to the Regulations of Beijing Xicheng District on Supporting Independent Innovation in Xicheng Park of Zhongguancun Science Park.

(Support from Xicheng District Government)

iv. Given their business scale, market position, innovation capability, comprehensive contributions and other factors in the Demonstration Zone, the certified key Chinese FinTech enterprises or professional service agencies will see their senior executives or business backbone personnel receive a certain amount of fund rewards; and the renowned foreign FinTech enterprises or professional service agencies will see their top employees rewarded financially, a move to attract and get together more FinTech professional with an international profile.

(Support from Xicheng District Government)

Article 6       The financial and sci-tech communities are encouraged to make exchanges and cooperation at home and abroad, so as to create an open environment in favor of financial and technological development.

i. FinTech enterprises are supported to team up with their international peers. Specifically, they are expected to introduce FinTech from top foreign universities and institutes as well as Fortune 500 companies, and work with them to research and convert FinTech into application. At the same time, they will receive support in organizing the FinTech forums, seminars and other events on an international scale, and attending the important international exhibitions and conferences abroad. In doing so, they will be well positioned to become the bridges through which Beijing can innovatively team up and make exchanges with major foreign cities that boast of advanced FinTech. By then, Beijing will grow into a magnet for FinTech enterprises and professional service agencies, and be able to promote the business contacts between Chinese financial institutions/FinTech enterprises and their foreign counterparts.

(Support from the Administrative Committee of Zhongguancun Science Park and Xicheng District Government)

ii. Where a FinTech enterprise or professional service agency wins a financial support for an international exchange/cooperation project at the State or municipal level, Xicheng District Government will give the enterprise or agency a fund reward accounting for a half of the support it has received and not exceeding RMB500,000. If a FinTech enterprise or professional service agency constructs a lab, hosts a professional exhibition/exchange event, or sets up a new R&D/operating branch along with international research institutes and universities, the enterprise or agency will be granted a one-time fund reward worth no more than RMB150,000, RMB100,000, and RMB50,000 respectively.

(Support from Xicheng District Government)

iii. FinTech enterprises and professional service agencies are supported to host or undertake the entrepreneurship competitions and festivals with nationwide and international influences. In doing so, each of them will receive a subsidy that accounts for 50% of the actual input (which consists of venue fees, construction fees, equipment rental fees, etc.) It should be noted that the subsidy for a single enterprise or agency won’t exceed RMB3 million.

(Support from the Administrative Committee of Zhongguancun Science Park)

iv. FinTech enterprises and professional service agencies are supported to make innovative theoretical research on FinTech, and publish reports on cutting-edge FinTech and industry development. Besides, FinTech innovation awards will be rolled out in support of applying into application such cutting-edge technologies as new-gen, automatically controlled information system and new-gen Internet. At the same time, measures will be taken to advocate secure, green financial services, and finance the selection of the innovative FinTech application scenarios of the year. Both theoretical research results and award-winning application scenarios will be recognized and rewarded.

(Support from Xicheng District Government)

Article 7 FinTech enterprises are supported to raise funds through a diversity of channels, and more services and fund supports are given to get them listed.

i. Beijing Sci-tech Innovation Fund and Xicheng District Government Industry Investment Fund will have their guiding role brought into full play. Beijing FinTech Industry Investment Fund will be created by attracting private capital. It is aimed to focus attention on the FinTech field and invest in FinTech enterprises.

(Support from Xicheng District Government)

ii. The Demonstration Zone will refine its mechanisms for getting enterprises listed, and delivering related services and trainings, provide them with support and assistance in the key aspects of their restructuring, and streamline the procedures through which enterprises apply for credentials as required by their listing. Priorities will go to the availability of services throughout the process and the improvement of work efficiency.

(Support from Xicheng District Government)

iii. FinTech enterprises will receive more financial support for them to go public. Where a FinTech enterprise makes its IPO in the Chinese main-board market, SME-board market or growth-enterprise-board market that has passed the pre-listing tutoring by CSRC Beijing Office, submitted the IPO application, and obtained acceptance letter from CSRC, the enterprise will apply for a special supporting fund worth RMB3 million. If the reply of approval is obtained from CSRC and the IPO is wrapped up, the enterprise may apply for another special supporting fund in the amount of RMB3 million.

If a FinTech enterprise has made its IPO in an overseas capital market that is recognized by the District Government, the enterprise may apply for a one-time special supporting fund worth RMB6 million.

Where a FinTech enterprise gets listed through the National Equities Exchange and Quotations, the enterprise will have its comprehensive indicators scored in terms of market position, business development, and regional contribution, and be granted with a special supporting fund worth no more than RMB1.5 million.

If a FinTech enterprise is listed firstly through the National Equities Exchange Quotations and then in another capital market at home or abroad recognized by the District Government (for example, an enterprise listed on both the New Third Board Market and the Hong Kong Exchanges and Clearing Market), the enterprise can refer to the reward standards for listing domestically and overseas, and apply for another special supporting fund to make up the difference accordingly.

For an overseas listed FinTech enterprise of the Demonstration Zone that gets listed again in the main-board, SME–board, or growth-enterprise-board market, another special supporting fund can be applied for to make up the difference according to the reward standards for listing domestically and overseas.

Where a FinTech enterprise not based in Xicheng District gets listed in the domestic or foreign capital markets recognized by the District Government, and then moves its place of registration and taxation into the District, the enterprise may apply for a subsidy up to RMB6 million to compensate the costs incurred by the purchase or rental of office premise.

If a non-listed FinTech enterprise goes public by acquiring a non-local listed company with the approval of CSRC, and moves its place of industrial & commercial registration and taxation into Xicheng District, the enterprise may apply for a special supporting fund according to the reward standards of the District for companies to be listed at home or abroad.

(Support from Xicheng District Government)

Article 8       Xicheng District supports the gathering of high-end elements, encourages the establishment of professional service systems with a view to accelerating FinTech incubation and collaborative innovation.

i. FinTech enterprises and professional service agencies are supported to build a hard technology incubation platform to provide professional services such as product R&D, inspection and testing, and industry integration. Each of them will have their total project input (incurred by equipment purchase, rental, R&D, loan interest, information system development, platform operation, and other aspects) subsidized at a ratio of 30% at most. It should be noted that the supporting funds last for up to three consecutive years and don’t exceed RMB30 million in total.

(Support from the Administrative Committee of Zhongguancun Science Park)

ii. FinTech enterprises are supported to build infrastructure platforms such as Internet-based credit information, data transactions, and industry pre-warning monitoring throughout the key links including regulation, credit reporting, payment, data, and trading, and to improve the application environment of FinTech. Each platform in this category will receive a supporting fund which accounts for up to 50% of its establishment and operation expenses and won’t exceed RMB5 million.

(Support from the Administrative Committee of Zhongguancun Science Park)

iii. For the certified high-tech industry incubation and acceleration bases located in Xicheng District, special supporting funds will be granted to support the construction of public service facilities (both hardware and software) and to reward the stationed enterprises that make headway in independent innovation. The total annual financial support that goes to a single base won’t exceed RMB8 million.

(Support from Xicheng District Government)

iv. FinTech institutions are supported to disclose and share their financial big data, thus providing the fundamental support for FinTech innovation. Third-party credit reporting and assessment agencies are encouraged to establish a unified credit information system and provide more convenient credit evaluation services for individuals and organizations. The new-generation Internet technologies will be applied to offer information security, legal, financial, intellectual property, personnel, and other professional services. An exemplary application project in any of the above fields, once certified, will be given a subsidy in an amount of no more than RMB500,000.

(Support from Xicheng District Government)

Article 9       The Demonstration Zone is supported to improve the quality of its buildings and generate more benefits from them.

i. The Demonstration Zone is supported to update the facilities of key buildings to develop FinTech and professional services. To be specific, renovations towards green, user-friendly, and market operations, and upgrades in functions, municipal and business supporting facilities, building quality, and building environment will be made so that these spaces will be suitable for the innovative development of FinTech and professional services. For a building renovation and upgrading project that is located within the core area or has been certified with an area of no less than 3,000 square meters, a subsidy that accounts for up to 30% of its total investment will be given. It should be noted that the subsidy per square meter cannot exceed RMB1,000 and the total subsidy for the single project won’t run over RMB50 million. Other buildings than listed above shall be governed by the Measures of Xicheng District for Promoting the High Quality Development of Building Economy.

(Support from Xicheng District Government)

ii. Building investors or operators (building owners or property management companies) are supported to house FinTech enterprises. Based on the increment of comprehensive contributions a building has made to the District from the previous year to the year, a building operator will be granted with a fund reward which accounts for up 10% of its increased contribution. It should be noted that the financial incentive won’t exceed RMB10 million.

(Support from Xicheng District Government)

Article 10     A green service channel is opened up for FinTech enterprises and professional service agencies to further improve the business environment.

i. The Xicheng District Government will disclose the standards for selecting and reviewing enterprises to settle in the Demonstration Zone, streamline service procedures and cut down the time required, and enable registration, tax declaration, social insurance payment, and other services to be more conveniently accessible online.

(Support from Xicheng District Government)

ii. The Demonstration Zone Service Office will be established to coordinate the relevant authorities of industry and commerce, taxation, and statistics, so that a fast track and dedicated personnel will come in place to provide up-to-standard, customized services for member enterprises throughout the entire process from registration to operation. Key FinTech enterprises and professional service agencies may have the above formalities dealt with by others on their behalf. Precise services will be offered to help them solve various difficulties encountered in their development substantially.

(Support from Xicheng District Government)

iii. A host of service modes that feature service cards, exemplary plaques, credit information sharing, interactive meetings, and honor rolls will be put into operation, so as to provide considerate, personalized services for enterprises just as they need.

(Support from Xicheng District Government)

Article 11     The Measures shall be interpreted by Xicheng District People’s Government of Beijing Municipality Document of the Administrative Committee of Zhongguancun Science Park, and Beijing Financial Street Services Bureau for their respective articles. The implementation rules shall be formulated separately. If the State or Beijing Municipality promulgates a new regulation, the new one shall prevail. In the event that the Measures is in the same nature as other district-level policy provisions, enterprises may only choose to follow one of them. Repeated applicability is prohibited.

The Measure has taken effect since December 8, 2018 and will remain valid for three years.

CC: all departments of the CPC Xicheng District Committee and the People’s Armed Forces Department of Xicheng District

NPC Standing Committee Office, CPPCC Office, People’s Court and People’s Procuratorate of Xicheng District

General Office of Xicheng District People’s Government of Beijing Municipality    Distributed on December 7, 2018