Qianhai Updates Support for Hong Kong and Macao Medical Institutions

Qianhai has revised its support measures for Hong Kong and Macao medical institutions, introducing enhanced fiscal incentives, clearer eligibility criteria, and stricter compliance requirements to promote long-term, high-quality healthcare development. The updated framework reinforces Qianhai’s role as a key testing ground for cross-border healthcare cooperation and foreign participation within the Greater Bay Area.

Qianhai, one of China’s most prominent pilot zones for institutional innovation, continues to play a central role in advancing Shenzhen–Hong Kong–Macao cooperation in modern services. Positioned at the forefront of Greater Bay Area (GBA) integration, the zone has increasingly been used as a testing ground for cross-border regulatory alignment, particularly in professional services such as finance, legal advisory, and healthcare. Medical services, in particular, have emerged as a strategic focus as authorities seek to address cross-border patient demand, professional mobility, and access to international-standard care.

Against this backdrop, on January 4, 2026, the Qianhai Authority and the Shenzhen Municipal Health Commission jointly released the revised Measures for Supporting the Clustering Development of Hong Kong and Macao Medical Instituti… (hereinafter, the “Measures”), further strengthening Qianhai’s policy framework for cross-border healthcare cooperation.

Effective from January 31, 2026 for a period of three years, the updated Measures replace the 2023 version and introduce clearer, more comprehensive support mechanisms for Hong Kong, Macao, and eligible foreign medical service providers operating in the zone.

In this article, we examine the key features of the revised Measures, with a focus on eligibility criteria, fiscal incentives, and compliance requirements, and assess their implications for Hong Kong, Macao, and foreign medical institutions considering entry or expansion in Qianhai.

Policy background and regulatory context

The revised Measures formally repeal the 2023 version of the Measures, while also providing transitional arrangements for institutions that had already received or were eligible for funding under the earlier framework. Institutions established during the validity period of the 2023 Measures may continue to receive remaining subsidies in accordance with the original standards, ensuring policy continuity while shifting new applicants to the updated regime.

From a regulatory perspective, the revised Measures align with broader national and regional initiatives to expand and standardize the opening of the healthcare services sector, particularly within the GBA.

They are grounded in the Comprehensive Plan for Deepening Reform and Opening-Up of the Qianhai Cooperation Zoneissued by the CPC Central Committee and the State Council, which calls for enhanced cross-border service integration and institutional innovation. In the healthcare context, this includes facilitating cross-border practice by Hong Kong and Macao professionals, improving access to overseas drugs and medical devices, and promoting mechanisms for cross-border medical insurance settlement.

By refining financial incentives and clarifying administrative and compliance requirements, the revised Measures reflect a shift toward a more predictable and rule-based approach to healthcare opening in Qianhai. This positions the zone as a regulatory testing ground for deeper GBA healthcare cooperation while maintaining alignment with national oversight and risk-control objectives.

Eligible institutions and scope of application

The revised Measures apply to medical institutions established by Hong Kong and Macao service providers within the Qianhai Cooperation Zone, covering hospitals, outpatient departments, and clinics, including traditional Chinese medicine and integrated Chinese-Western medicine institutions.

Eligible institutions may be established in either wholly-owned or joint-venture form, provided they have completed medical institution practice registration in accordance with PRC regulations and are engaged in substantive operations within Qianhai.

To qualify for financial support, institutions must demonstrate lawful and compliant operations, including no records of medical accidents or illegal or irregular business conduct within the preceding year.

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Community health service institutions jointly established with Hong Kong and Macao service providers are also covered under the Measures and are treated, by reference, as outpatient departments for policy application purposes. Importantly, the scope of the Measures is extended by reference to medical institutions established by foreign investors and Taiwan service providers in accordance with relevant regulations.

Fiscal support framework for medical institutions

The revised Measures establish a multi-tiered fiscal support system linked to both the grading of medical institutions and their ownership structure, distinguishing between wholly Hong Kong or Macao-owned entities and joint ventures.

Establishment subsidies

Eligible medical institutions can apply for establishment subsidies, with differentiated thresholds for:

• Comprehensive hospitals;
• Specialist hospitals;
• Outpatient departments; and
• Clinics.

All establishment-related subsidies are disbursed in three phases over a three-year period, at a ratio of 50 percent in the first year, 30 percent in the second year, and 20 percent in the third year. This phased allocation mechanism reflects a policy intent to promote operational stability and sustained development, rather than short-term entry motivated solely by upfront incentives.

Medical equipment subsidies

Hong Kong and Macao medical institutions that procure single medical equipment items with a transaction value exceeding RMB 500,000 (US$71,826.70) may apply for subsidies of up to 10 percent of the equipment’s purchase price, subject to a cap of RMB 500,000 (US$71,826.70) per item and RMB 5 million (US$718,267) per institution in total. Where the purchase price of similar equipment exceeds the government procurement price of public hospitals, subsidies are calculated based on the highest or average procurement price of comparable equipment during the same period.

Property purchase and leasing support

Institutions purchasing property within Qianhai for medical practice for the first time may receive subsidies calculated at RMB 1,800 (US$258.58 ) per square meter, with a maximum total subsidy of RMB 15 million (US$2.15 million), disbursed evenly over three years. Alternatively, institutions leasing premises for medical use may apply for rental subsidies of up to RMB 24 (US$3.45) per square meter per month, for a maximum period of three years, with annual subsidies capped at RMB 5 million (US$718,267), per institution.

Taken together, these incentives significantly reduce upfront capital and operating costs, with direct implications for cost structuring, site selection, and long-term planning for medical institutions considering entry into Qianhai.

Institutional performance-based rewards

In addition to establishment and operational support, the revised Measures introduce a range of performance- and outcome-oriented incentives.

Institutions that obtain international accreditation under the International Hospital Accreditation Standards (China) for the first time may receive a one-time reward of RMB 2 million. Institutions designated as “Hong Kong–Macau Medicines and Devices Access” medical institutions are eligible for a one-time reward of RMB 500,000 (US$71,826), with additional incentives linked to the approved use of urgently needed Hong Kong and Macao drugs and medical devices, subject to annual and cumulative caps.

The Measures also encourage participation in cross-border medical insurance direct settlement schemes, offering per-transaction subsidies, and reward institutions that are approved for national, provincial, or municipal key medical specialty projects.

For projects deemed to have significant strategic importance to Shenzhen–Hong Kong–Macao cooperation or medical services clustering in Qianhai, the Qianhai Authority may enter into separate contractual arrangements to provide tailored support.

Incentives for Hong Kong and Macao medical professionals

The Measures place strong emphasis on facilitating the cross-border mobility of medical professionals, particularly from Hong Kong and Macao.

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Medical institutions employing Hong Kong or Macao medical professionals who successfully complete Mainland practice registration may apply for a one-time subsidy of RMB 20,000 per registered professional, subject to limitations on repeated claims across institutions and practice cycles.

Where Hong Kong or Macao physicians provide actual diagnostic and treatment services, institutions may additionally apply for service-based subsidies calculated at RMB 100 per consultation, capped at RMB 1 million (US$143,653.40) per year and RMB 3 million (US$430,960.20) over the policy’s validity period, excluding overlap with existing basic medical service subsidies.

Further support is provided for the purchase of medical malpractice liability insurance, with institutions eligible for subsidies covering 50 percent of annual premiums, up to RMB 200,000 (US$28,730) per year.

Application procedures

The revised Measures set out a relatively structured and transparent framework governing the application, review, and supervision of support funds, reflecting Qianhai’s broader emphasis on standardized administration and accountability in pilot reforms.

Applications for support funds are accepted during designated periods announced by the Qianhai Authority. Eligible medical institutions must submit applications in accordance with the official application guidelines, which specify required documentation.

Core materials include:

• Standardized application form;
• Declarations of compliance and integrity;
• Proof of operational premises within Qianhai; and
• supporting documents demonstrating institutional qualifications and eligibility.

Applicants bear full responsibility for the authenticity and legality of submitted materials.

Following submission, the Qianhai Authority conducts a formal review of application materials, with the Shenzhen Municipal Health Commission providing supporting verification on institutional qualifications where necessary.

Applications that pass the initial review are subject to on-site inspections, after which review results are publicly disclosed for a minimum of five working days. This disclosure mechanism allows third parties to raise objections, which the authorities are required to investigate and resolve before final approval.

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Once the public disclosure process is completed and no valid objections remain, approved funds are disbursed in accordance with the relevant subsidy category and disbursement schedule. In some cases, the Qianhai Authority may enter into specific support agreements with recipient institutions to clarify funding conditions and implementation obligations.

Compliance and accountability

The Measures also include detailed accountability and clawback provisions.

Institutions found to have obtained funding through falsification, misrepresentation, or improper use of funds are required to return all disbursed amounts in full, with interest calculated based on the prevailing one-year loan prime rate (LPR).

Serious violations may result in administrative penalties or criminal liability. In addition, the Measures explicitly prohibit institutions from receiving overlapping support for identical matters under multiple policy frameworks at the municipal, district, or cooperation zone level.

Strategic implications for investors and healthcare providers

The revised Measures provide a clear signal of China’s continued, albeit carefully managed, opening of the healthcare services sector within the GBA. Rather than broad liberalization, the policy reflects a targeted approach that prioritizes institutional quality, regulatory compliance, and alignment with cross-border cooperation objectives.

For Hong Kong and Macao medical institutions, Qianhai offers a relatively low-friction entry point into the Mainland market, supported by financial incentives, facilitated professional mobility, and policy experimentation in areas such as cross-border insurance settlement and access to imported drugs and medical devices.

For foreign healthcare providers, the explicit extension of the Measures’ applicability by reference underscores Qianhai’s role as a testing ground for international participation under a controlled and incentive-driven framework.

At the same time, the design of the support mechanisms suggests that entry strategy and compliance planning are critical. Phased disbursement of establishment subsidies, caps on annual and cumulative funding, and strict supervision requirements mean that institutions must be prepared for sustained operations and long-term regulatory engagement. Investors should also factor in the interaction between Qianhai-specific incentives and broader national rules governing foreign investment in medical services, practitioner licensing, and data and insurance compliance.

As China continues to pursue incremental opening in sensitive service sectors, Qianhai is likely to remain a key policy laboratory. The experience gained under these Measures may not only shape future healthcare reforms within the GBA, but also inform the broader trajectory of foreign participation in China’s medical services market under an increasingly standardized yet incentive-driven regulatory framework.

Dezan Shira & Associates advises healthcare investors and service providers on market entry, regulatory compliance, and policy incentives across China’s pilot zones and the Greater Bay Area. For tailored guidance on establishing or expanding medical operations in Qianhai or the GBA, please contact China@dezshira.com. 

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