(Yicai Global) Sept. 20 -- Shanghai Pilot Free Trade Zone is offering up to CNY60 million (USD8.5 million) in cash to each financial institution that opens a branch in its recently added area, as it seeks to fast-track financial innovation and services in Lingang New Area.

Banks, brokerages, fund and asset managers, private equity firms and insurers that deal in both Chinese yuan and foreign currencies will be eligible for the subsidies, The Paper reported today, citing Lingang's management committee.

Financial institutions that move to Lingang with the intention of buying office buildings for their own use will be offered a one-time subsidy of 12 percent of the purchase price of the property to a maximum of CNY60 million, the committee said.

For those that prefer to buy land to build their own office premises, the FTZ is offering a 30 percent discount on land price. Those who rent office space will be exempt from paying for the first three years.

Eligible financial firms will also be granted a one-time cash gift of up to CNY6 million, while executives who choose to live in Lingang property purchase subsidy and preferential personal income tax rates.

These subsidies and gifts are aimed at encouraging the institutions to implement innovative cross-border, off-shore financial services and products that enhance the financial environment of the FTZ's new extension, the committee said.

The 119.5 kilometer square district in southeastern Shanghai was added to the city's existing Free Trade Zone last month. Its proximity to Yangshan Deep-Water Port, one of the busiest cargo ports in the world, puts it in an excellent position to promote trade and help China open up further to the global economy.

Lingang New Area will trial freer trade, investment, finance and employment policies to meet the standards of the most competitive free trade zones worldwide, the State Council, China's cabinet, said in a statement last month. Its aim is to facilitate overseas investment and capital flows as well as realize the free flow of goods.