Hengqin stakes $48 million to attract the very best

Hengqin New Area will provide 100 million yuan ($16 million) in R&D subsidies to a winning company with the strongest potential and talents in emerging businesses. Another 200 million yuan ($32 million) will be spilt among nine runners-up in three categories.

The inaugural Innovation & Entrepreneurship Competition was announced on May 16. The annual event will narrow down the list of hopeful companies. Applications will be accepted in June, with finals held in November.

Online registrations will be followed by an official screening process. A panel of judges will consist of national technical experts, noted venture capitalists, and experts in industrial economy. Teams that receive the highest scores will participate in a final Q&A session.

A third-party agency will be selected by the area's Administrative Committee to ensure professionalism and an even playing field.

Only 10 teams will be eligible for a share of 300 million yuan ($48 million) from the Hengqin Bureau of Finance each year. Just the most outstanding team will receive the maximum amount. The rest will comprise two first-grade, three second-grade, and four third-grade teams. They will each receive 50 million yuan ($7.9 million), 20 million yuan ($3.1 million), and 10 million yuan ($1.6 million) respectively, according to the Hengqin Bureau of Commerce.

Projects should involve strategic emerging industries in line with new-generation information technology, biomedicine, digital economy, new materials, and marine economy.

Tentative Measures issued during the press conference state that: Winning teams must establish and register as an independent legal entity in Hengqin. They will conduct R&D and office work, among other things, in the Hengqin New Area, Zhuhai Free Trade Zone, and Hongwan and Wanzai integrated area for at least eight years, with their tax liability unchanged.

The subsidies will go toward attracting talent, purchasing equipment, testing products, applying for patents, inspection and testing, and R&D. Personal consumption, home purchases or other unrelated expenditures are not eligible for subsidies.

Local officials say the competition and incentives are of great importance to Hengqin and the new urban center. They want winners will take full advantage of the policy, shaping themselves as unicorn companies and industry leaders.