Innovation Law’s Lessons for Fixing Qianhai (25 May 2017)

The University of Hong Kong
Asian Institute of International Financial Law
RGC Theme-based Research Scheme Project:
“Enhancing Hong Kong’s Future as a Leading International Financial Centre”


Innovation Law’s Lessons for Fixing Qianhai

Dr. Bryane Michael

Thursday, 25 May 2017
12:30 – 1:30 pm
Room 723, 7/F Cheng Yu Tung Tower
The University of Hong Kong

Many countries — including China — hope to build another Silicon Valley from scratch in their own backyards. Qianhai hopes to fuse Shenzhen and Hong Kong’s innovative systems into a global innovation powerhouse. Yet, its current design makes it just another large property development. In this paper, the authors present econometric evidence shows how innovation has responded to various legal provisions from Hong Kong’s and Shenzhen’s innovation-enhancing laws. The authors show how applying these lessons to reform these laws in the Qianhai region could increase Qianhai’s companies’ profits by a factor of 10. The authors present an Ordinance and an Agreement with the Mainland incorporating these lessons, making Qianhai’s companies far more profitable than currently expected. Most importantly, the authors discuss the implications for other jurisdictions trying out their own Qianhais – and what their experience tells us about the development of “innovation law” in general. The Paper is available at here.

Online Presentation

Bryane Michael is a Fellow with the AIIFL. He has advised over 20 countries on corporate governance reform in his work at the World Bank, OECD, UN, and EU in places like Turkey, Russia, the UK, Thailand and the Philippines. He put his advice into practice as an advisor to with a top 3 Wall Street investment house. His previous study on Hong Kong’s corporate governance has attracted over 6,000 viewing hours on YouTube and his iTunes podcast, and over 500 downloads from regulators.