Hetao Co-operation Zone: Boosting Innovative Development

Under China’s15th Five-Year Plan[1], the Guangdong‑Hong Kong‑Macao Greater Bay Area (GBA), one of the most open and vibrant regions of the Chinese Mainland, is to play an important role in promoting integrated regional development. ThePlanplaces special emphasis on advancing the construction of the GBA, strengthening the alignment of the rules and mechanisms for science and technology innovation, and giving full play to the pilot run of major co‑operation platforms in a move to accelerate the development of a world‑class bay area.

• TheHetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (HTCZ)– an iconic Shenzhen-Hong Kong innovation and technology co-operation platform and an important testing ground for integrated regional development underlined by the15th Five-Year Plan– will generate opportunities for Hong Kong companies to develop the innovation and technology industry while enhancing the strengths of Hong Kong as an international innovation and technology centre.

• Hong Kong companies can, through Shenzhen-Hong Kong collaboration, integrate with the industries and market of the GBA, while Chinese Mainland and foreign enterprises can take advantage of the Hong Kong platform to promote co-operation in technology and business.

• Looking to the future, freer flows of personnel, goods, capital and data between theHong Kong Parkand theShenzhen Parkin theHetao Zoneand the gradual removal of barriers restricting the flow of innovation will help further bolster the joint development of scientific research between the two cities.

Integrating Shenzhen-Hong Kong innovation

TheHTCZ, a major co‑operation zone with a focus on technology and innovation, is already operational. The Shenzhen municipal government and the Hong Kong SAR government have made considerable efforts to develop the co‑operation zone with a view to achieving the “one river, two banks; one zone, two parks” arrangement designed to drive innovation and technology synergy across Shenzhen and Hong Kong.

At the end of last year, theShenzhen Municipal People's Congress Standing Committeeissued theRegulations of the Shenzhen Special Economic Zone on the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone[2] (theRegulations), setting out guidelines for system alignment to further promote the cross‑boundary integrated development of theShenzhen ParkandHong Kong Parkin the zone, and to lay a solid foundation forHetaoas an international scientific research hub.

With regard to Hong Kong, theHetao Hong Kong Parkwas officially opened in December last year. As part of its Phase 1 Batch 1 development, two wet lab buildings and one talent accommodation block have been completed. As of April 2026, a total of 79 enterprises and organisations from the Mainland, Hong Kong and overseas had signed contracts and moved into the two wet lab buildings, according to figures released by theHong Kong Innovation, Technology and Industry Bureau. Major research areas cover state‑of‑the‑art technologies such as AI and data science, and life and health technology, with some of the tenants world‑class R&D organisations or unicorns.

As more enterprises establish a presence in theHTCZ– and given the introduction of a series of measures facilitating cross‑boundary flows of goods, services, capital, data and personnel – the resources in Shenzhen and Hong Kong can be expected to connect seamlessly to foster a closely integrated innovation ecosystem. In light of this, Hong Kong companies should lose no time in makingHTCZ‑related development plans, while taking advantage of the preferential policies set out in the15th Five-Year Planto deepen cross‑boundary co‑operation via this pilot platform and to identify new growth opportunities in the GBA.

Unrestricted cross-boundary material flows

Innovation and technology companies often need a wide variety of scientific research goods, including precision instruments, biological specimens and lab consumables, for their research activities. According to theDevelopment Outline for the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone[3] (theDevelopment Outline), theHTCZwill look to establish mechanisms such as a “green lane” and a “white list”, which will help streamline the clearance and approval procedures for research materials.

At the same time, Shenzhen and Hong Kong are actively looking into innovative ways of achieving point‑to‑point cross‑boundary transport, including using drones (electric vertical take‑off and landing aircraft (eVTOLs)) in their respective parks. On the Shenzhen side, theRegulationsstate that materials in theHTCZare subject to “freer access at the first line, regulated access at the second line, and free flows within the zone” customs supervision system. A tax exemption policy for scientific research goods has also been formulated, which sees self‑use scientific research goods entering theHetao Shenzhen Parkfrom Hong Kong exempted from import duties, import value‑added tax and consumption tax.

Once these measures are implemented, scientific research goods for self‑use in theHTCZare expected to flow freely across boundaries without having to complete the many customs declarations, quarantine and tax‑related examinations, and approval procedures at the official checkpoints, an entitlement that will significantly reduce customs clearance time. Compared with other regions, while theGuangdong Free Trade Zoneand the GBA have facilitation measures in place for the movement of goods, as yet, they have no green channels or tax‑free policies dedicated to “innovation and technology resources”. Looking to remedy this, theHTCZwill introduce a cross‑boundary co‑operation arrangement specifically for scientific research goods, with the aim of helping zone tenants develop viable applications for scientific research achievements.

Another of the emerging sectors highlighted in the15th Five-Year Planis the low‑altitude economy. In response to this, both theShenzhenandHong Kong ParksinHetaowill strengthen their study and trial of cross‑boundary low‑altitude transport with the aim of helping enterprises resolve last‑mile delivery problems, allowing them to realise direct air delivery of small‑batch, highly time‑sensitive and high‑value scientific research goods, thereby enhancing theHTCZ’scompetitive edge.

Capital flow enhancements

Cross‑boundary flow of capital between Mainland and Hong Kong enterprises is often subject to Chinese Mainland regulatory requirements relating to foreign exchange control and direct investment. At present, the HKSAR government and the Mainland authorities are actively exploring measures to facilitate the cross‑boundary flow of capital for enterprises operating in theHTCZ, a move expected to allow for the co‑financing of industrial projects in the two Parks [4].

At the macro level, measures for freer capital flow should further strengthen Hong Kong’s position as an international innovation and technology hub. This will see Chinese Mainland enterprises empowered to “go out” via Hong Kong by establishing international headquarters or global R&D centres in theHong Kong Park. This would allow them to leverage Hong Kong’s advantages as an international financial centre – such as its robust legal system, internationally recognised intellectual property protection regime, and its global business network – in order to effectively expand overseas.

Beyond that, foreign enterprises can easily tap into the Chinese Mainland market and its industrial resources via Hong Kong by conducting joint R&D directly with Mainland enterprises operating in theHong Kong Park, sharing such resources as lab and biological specimen banks, and jointly applying for scientific research funds – all of which will help to accelerate the development of any relevant Mainland‑sited projects.

R&D data sharing

With regard to the cross‑boundary flow of data, theHTCZwill prioritise ensuring enterprises in theHetao Hong Kong Parkcan access Mainland scientific research findings. Moves will also be made to establish the required cross‑boundary data‑flow management mechanisms [4].

Data export in China is generally subject to stringent safety assessments, quantity controls and multiple approval procedures. Inevitably, this has affected the collaborative efficiency of cross‑boundary scientific research. In line with the GBA framework, the Mainland has issued aStandard Contract for the Cross-boundary Flow of Personal Information Within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong)[5] in a bid to streamline data export requirements.

TheStandard Contractsees restrictions on the flow of cross‑boundary personal data lifted, with all regulatory‑compliant personal data cleared to be transferred freely within the GBA. This measure, however, only applies to personal information and does not cover scientific research data. The development of scientific research enterprises that rely on cross‑boundary data is, therefore, restricted, with such businesses also subject to additional compliance costs.

Once the specified scientific research data approval procedures have been implemented, however, it is anticipated that high‑value Mainland scientific research data (especially clinical medical data and biological specimen‑related data) can be easily transferred to theHong Kong Parkvia theHTCZ,lowering the cost of data acquisition for the relevant enterprises.

Promoting research synergy via personnel mobility

According to theDevelopment Outline, footbridges across the Shenzhen River will be constructed at the eastern and western sides of theHTCZin order to directly connect the two Parks. Work on the western footbridge commenced in December 2025 and is scheduled for completion in mid‑2027, according to the HKSAR government.

Meanwhile, theHTCZis actively exploring the introduction of an innovative entry‑exit customs clearance system using facial recognition technology to verify the identity of designated personnel, facilitating the movement of innovation and technology personnel throughout the two Parks. In the case of theShenzhen Park, theRegulationsspecify that a highly efficient entry‑exit policy will be in place for designated personnel. In addition, overseas scientific research personnel, as invited by scientific research organisations and enterprises in theShenzhen Park, as well as foreign experts working in theHong Kong Park,will be permitted to enter the zone after having secured a Visa‑on‑Arrival and then, subsequently, applying for a long‑term multiple‑entry visa or residence permit.

During the15th Five-Year Planperiod (and following the completion of the footbridges across the Shenzhen River and the introduction of the “contactless clearance measures), scientific research personnel will no longer be obliged to use additional checkpoints to enter theHTCZand will be freed from such time‑consuming processes as queuing and manual inspection. Personnel starting work early and returning home late, as well as those who take frequent trips, will find their commuting time greatly shortened, inevitably enhancing the efficiency of cross‑boundary scientific research co‑operation between the two locales.

More importantly, the free movement of personnel throughout the two Parks is expected to accelerate the synergised scientific research innovation process in order to deliver the desired “1+1>2” synergy effect. This will see Hong Kong scientific research personnel able to enter the Shenzhen Parkmore easily, freely leveraging its rich scientific research resources to carry out large‑scale production, clinical trials or the transformation of research achievements. Chinese Mainland scientific research personnel, meanwhile, will be free to utilise the Hong Kong Park to conduct cutting‑edge research and secure a wider range of business co‑operation opportunities.

As these personnel flow measures are gradually implemented,Hetaowill continue to enhance its status as the ideal work and residential destination for highly‑skilled staff from the Chinese Mainland and abroad. It is also expected that the knock‑on effect from this will confirm Hong Kong’s stature as one of the leading global talent hubs.

[1] The Outline of the 15th Five-Year Plan (2026-2030) for National Economic and Social Development of the People’s Republic of Chinawas reviewed and approved at the Fourth Session of the 14th National People’s Congress in March 2026.

[2] TheRegulations of the Shenzhen Special Economic Zone on the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zonewere passed at the 42nd session of the 7th Shenzhen Municipal People's Congress and came into force on 1 March 2026.

[3] In November 2024, the HKSAR government announced theDevelopment Outline for the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, setting forth the vision and mission, development history, development directions, strategies and targets of the Hong Kong Park.

[4] Source:Development Outline for the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone

[5] For more details, please seeCross-Boundary Data Flow