Original Title: Notice of the General Office of the Ningbo Municipal People’s Government on Issuing the Administrative Measures for Innovative Industrial Land (M0) in the Yongjiang Science and Technology Innovation Zone
Ning Zheng Ban Fa [2024] No. 33
Document Status: Valid
Registration Number of Normative Document: ZJBC01–2024–0007
To the People’s Governments of All Districts (Counties, Cities), and All Municipal, Ministry, and Provincial-Level Units Stationed in Ningbo:
The “Administrative Measures for Innovative Industrial Land (M0) in the Yongjiang Science and Technology Innovation Zone” have been approved by the Municipal Government. They are hereby issued to you for strict implementation.
General Office of the Ningbo Municipal People’s Government
July 21, 2024
(This document is publicly released)
Yongzhengbanfa (2024) No. 33.pdf
Administrative Measures for Innovative Industrial Land (M0) in the Yongjiang Science and Technology Innovation Zone
Article 1 To accelerate the development of the Yongjiang Science and Technology Innovation Zone and standardize the management of land for innovative industries, in accordance with the "Measures for the Economical and Intensive Use of Land in Zhejiang Province" (Decree No. 343 of the Zhejiang Provincial People’s Government),the “Notice of the Ministry of Natural Resources on Improving Industrial Land Supply Policies to Support the Development of the Real Economy” (Ziran Zhi Fa [2022] No. 201), and the “Opinions of the Zhejiang Provincial Department of Natural Resources on Further Enhancing the Level of Land Conservation and Intensive Use” (Zhe Ziran Zi Gui [2023] No. 16), and in light of the actual conditions in Ningbo, these Measures are hereby formulated.
Article 2 Land for innovative industries (M0) (hereinafter referred to as “M0”) refers to land that aligns with industrial development priorities and integrates functions such as research and development, creativity, design, pilot testing, inspection and testing, pollution-free production, and production-related consulting services, as well as related supporting services.
M0 project premises include industrial premises and supporting facilities. Industrial premises refer to premises used for production, R&D and design, surveying, inspection and testing, technology promotion, environmental assessment and monitoring, and other functional purposes. Supporting facilities include office, dormitory, commercial, and other office and living service facilities.
M0 is classified into non-divisible transferable M0 and divisible transferable M0 based on the type of industrial use.
Article 3 The scope of implementation of these Measures is the planning area of the Yongjiang Science and Technology Innovation Zone.
Article 4 M0 management shall follow the principle of “whoever proposes, whoever is responsible, and whoever supervises.”
The Office of the Municipal Yongjiang Science and Technology Innovation Zone Construction Leading Group (hereinafter referred to as the “Yongjiang Science and Technology Innovation Zone Office”) shall coordinate the management of M0 within the Yongjiang Science and Technology Innovation Zone and may advance M0 projects through joint meetings of municipal-level departments.
A mechanism for interdepartmental collaborative management shall be established. The Department of Natural Resources and Planning is responsible for M0 planning layout and access, land supply, land pricing, and property rights management. The Department of Development and Reform is responsible for formulating the classification catalog of innovative industries, industrial access criteria, as well as project approval, authorization, and filing. The Department of Economy and Information Technology is responsible for formulating the supervision procedures for project commissioning and full-capacity production acceptance in conjunction with the Departments of Development and Reform, Science and Technology, and Investment Promotion.The Department of Housing and Urban-Rural Development is responsible for formulating architectural design standards or guidelines for innovative industrial projects. Other relevant departments shall, in accordance with their respective responsibilities, cooperate in providing services and conducting supervision.
Local governments are responsible for the acceptance and filing of M0 project applications, preliminary review, acceptance upon reaching full production capacity, and compliance supervision. They may formulate implementation rules for acceptance upon reaching full production capacity and compliance supervision by referring to the "Zhejiang Province Guidelines for 'Standard Land' in Enterprise-Invested Industrial Projects" (hereinafter referred to as the "Standard Land Guidelines").
Article 5 M0 projects shall implement a separate approval system for project access and planning layout. Approval shall not be granted under any of the following circumstances:
1. The industry type does not meet the requirements of the Ningbo City Innovative Industry Classification Catalog;
2. The project is not within the scope of the M0 planning layout;
3. The admission requirements fall below the standards specified in the “Standard Land Guidelines”;
4. The project fails to meet requirements for ecological and environmental protection, work safety, and comprehensive disaster prevention;
5. The project does not comply with national, provincial, or municipal regulations regarding industrial orientation, cluster classification, or control indicators.
Article 6 Innovative industrial projects that meet the following conditions shall be encouraged and supported for priority access, and the review of project access applications shall be strictly conducted.
1. Conditions for Priority Access to Innovative Industrial Projects
(1) Projects that align with the industrial development direction of the Yongjiang Science and Technology Innovation Zone and the guidelines of the “Zhejiang Province High-Tech Industry (Industrial) Statistical Classification Catalog” shall be given priority;
(2) Priority shall be given to projects with advantages in R&D input-output ratios and talent teams (comparative indicators include the ratio of internal R&D expenditures to operating revenue and the number of R&D personnel).
2. Project Access Review Process
Prospective projects shall undergo preliminary review by the local government, which shall then submit them to the Yongjiang Science and Technology Innovation Zone Office along with a Project Investment Performance Supervision Agreement (hereinafter referred to as the “Performance Supervision Agreement”). After the Yongjiang Science and Technology Innovation Zone Office convenes a joint review and obtains approval from relevant departments—including the Municipal Development and Reform Commission, Municipal Bureau of Economy and Information Technology, Municipal Science and Technology Bureau, Municipal Investment Promotion Bureau, and Municipal Bureau of Natural Resources and Planning—the local government shall issue a review opinion.
Article 7: Priority planning and layout for eligible M0 projects shall be encouraged and supported, and strict review of land use planning and layout for such projects shall be conducted.
1. Principles for Reviewing the Planning and Layout of M0 Projects
(1) M0 projects shall be prioritized for placement on existing industrial land within the implementation area and shall be located within industrial clusters.
(2) Strict total volume control shall be enforced. As key development zones for innovative industries, the Science Port, Digital Innovation Port, Youth Innovation Port, and Headquarters Port may have no restrictions on the proportion of M0 projects within their industrial block control lines; in other areas of the Yongjiang Science and Technology Innovation Zone, the proportion of M0 projects within industrial block control lines shall, in principle, not exceed 10% of the total industrial land area within those control lines.
(3) The surrounding area must offer convenient transportation and comprehensive supporting facilities.
(4) Strictly limit the designation of M0 land as transferable in parcels. For contiguous or adjacent plots totaling 30 mu or more, designation as transferable M0 is permitted; for plots smaller than 30 mu, priority shall be given to designating them as non-transferable M0, restricted solely for the enterprise’s own use.
2. Review Process for Land Use Planning Layout Approval
The local government shall propose a planning layout plan for M0 project sites and submit an application for planning layout approval to the Municipal Bureau of Natural Resources and Planning. After the Municipal Bureau of Natural Resources and Planning conducts a preliminary review and obtains the consent of the Yongjiang Science and Technology Innovation Office, the plan shall be implemented in the control detailed plan in accordance with procedures. Upon approval of the control detailed plan, the planning conditions for the plot shall be issued.
Article 8 In principle, M0 land should be mixed-use with other land functions and share urban production and living service facilities.
Article 9: Provided that the planning layout admission conditions are met, the adjustment of existing research and development-related land (A35/M1, A35/B, A35, A31, etc.) and industrial land (M) to M0 shall follow the simplified procedure for adjusting the control detailed plan.
Article 10 When preparing, revising, or making partial adjustments to the control detailed plan, the relevant planning indicators for M0 shall be determined in accordance with the following principles:
1. The floor area ratio shall generally be no less than 2.5 (including 2.5);
2. Indicators such as building density and building height limits may be determined by reference to industrial land standards, taking into account requirements for airspace protection, landscape, and sunlight.
Article 11 The compatible and mixed use of M0 functions is encouraged, and the scattered layout of ancillary facilities shall be strictly controlled. In principle, for a single M0 project with a total floor area (referring to gross floor area, hereinafter the same) exceeding 50,000 square meters, the land area of ancillary facilities shall not exceed 15% of the total land area, and the floor area of ancillary facilities shall not exceed 30% of the total floor area;For projects with a total floor area of less than 50,000 square meters, the floor area of supporting facilities shall not exceed 15% of the total floor area.
Adjacent plots are encouraged to centrally coordinate the placement of supporting facilities within the district; the floor area of such facilities may be determined in accordance with the standards for a single M0 project.
Parking facilities shall be provided at a level no less than 60% of the standards for commercial and office land.
Article 12: M0 projects shall primarily consist of industrial facilities and shall not be used for purely commercial or office purposes. Residential-style or villa-style developments are prohibited. The floor area of industrial facilities shall not be less than 70% of the total floor area, and the floor area of supporting dormitories shall not exceed 15% of the total floor area.
Industrial workshops within industrial facilities used for manufacturing shall comply with industrial building design codes, feature reliable structures and flexible layouts, conform to production processes, and meet relevant requirements for production and freight operations. Supporting facilities shall comply with applicable building codes based on their intended use, and supporting dormitories may be constructed in accordance with public rental housing standards.
Article 13 M0 land may be classified by land supply method into new M0 and converted M0 (referring to industrial land subject to demolition and reconstruction, or unused portions of industrial land). New M0 land shall be publicly transferred through auction or listing; for converted M0 land, after fulfilling the obligations stipulated in the original land transfer contract, procedures for changing land use conditions may be processed through negotiated transfer, except where the government has acquired the land for storage and intends to resupply it.
Article 14: M0 land may be granted in phases through a “lease-to-own” arrangement or granted in a single, comprehensive transaction; the specific method shall be determined by the local government.
Article 15: In principle, M0 land shall be granted with flexible terms; the land grant term is generally 20 or 30 years, with a maximum of 50 years, as determined by the local government.For M0 land supplied under the “lease-first, grant-later” approach, the lease term shall not exceed 5 years; upon passing the full-capacity acceptance inspection at the end of the lease term, procedures for the land grant for the remaining term may be processed, with the grant term determined by subtracting the already leased period from the total “lease-first, grant-later” term. The grant term for M0 land converted from industrial use shall be determined based on the remaining grant term of the original construction land.
Article 16: The benchmark land price for M0 shall be temporarily set at 1.5 times the current benchmark land price for industrial land; it shall be established as a separate category during the next round of benchmark land price updates.
M0 land shall be subject to differentiated land price management, with land prices linked to the proportion of land transferred upon subdivision, the actual concession term, floor area ratio, and other factors. The starting price for concessions with flexible terms shall be adjusted based on the ratio of the flexible term to the maximum term, ensuring it is not lower than this adjusted value. The starting price for specific projects shall comply with the minimum price standard for industrial land and shall be comprehensively determined by the local government based on the appraised value, in conjunction with factors such as industrial policies and agreed-upon project output.
For land converted from industrial to M0 use, the price difference between M0 and the original land must be paid retroactively based on the remaining concession term.
For “lease-to-own” M0 projects, the rent standard during the lease period shall be determined by applying a term adjustment based on the ratio of the lease term to the maximum term.Rent shall be paid in a lump sum; upon successful bidding, the bid bond may be directly converted into rent. Upon expiration of the lease term and successful completion of production capacity acceptance, when signing the land grant contract for the remaining term, the land grant price to be paid shall be determined by subtracting the total rent already paid from the total land grant price calculated based on the maximum grant term established at the time of leasing; the rent already paid shall be offset against the land grant price.
Article 17: Land allocation for new M0 projects and industrial-to-M0 conversion projects shall follow the procedures below:
1. New M0 projects shall be publicly offered through methods such as auction or listing in accordance with the procedures for standard land grants.
The grant announcement shall clearly specify planning conditions, land use type, proportion of supporting facilities, prerequisites for subdivision and transfer, subdivision and transfer ratios, contribution ratios, and construction timelines.
The performance supervision agreement shall be published together with the transfer documents as an annex to the auction or listing transfer documents. The performance supervision agreement shall include, but is not limited to, relevant clauses regarding the project’s production commencement date, investment intensity, industrial orientation, output intensity, tax contribution, ongoing operational supervision, liability for breach of contract, and minimum requirements for eligible project development.
The Performance Supervision Agreement shall clearly stipulate the collection of all appreciation gains from subsequent transfers and require the developer to specify, in the initial industrial property transfer contract, the preconditions for the buyer’s subsequent transfer of the industrial property, as well as matters related to the collection of appreciation gains. Additional terms may be included, such as the requirement that any transfer must be approved by the competent industry authority and the entity responsible for enforcing the Investment Performance Supervision Agreement, as well as conditions prohibiting transfer prior to production capacity verification or granting the government a right of first refusal.
For newly added M0 projects, the successful bidder (entity) may be determined through methods such as “capping land prices and bidding on tax revenue per mu,” “capping land prices and bidding on time to meet production targets,” or “capping land prices and bidding on the contribution of industrial premises.”
2. The winning bidder (entity) of a new M0 project and the entity obtaining project approval for an industrial-to-M0 conversion project shall first sign a performance supervision agreement with the department designated by the local government, and then sign a land grant (lease) contract with the natural resources and planning department or complete procedures for amending land use conditions.
Article 18 When granting M0 land, the local government may, based on demand, stipulate in the land supply contract that the land user must transfer a certain proportion of the land and industrial premises to the local government or its designated entity free of charge; the specific proportion shall be determined by the local government. The transferred industrial premises shall not be included in the project’s divisible transferable area and shall not occupy the project’s divisible registration and transfer ratio.
Article 19. The transferred state-owned construction land use rights and ownership of industrial buildings shall belong to the government or its designated entities. In principle, the local government or its designated entities shall serve as the managing and operating entities. The transferred land shall be used for urban infrastructure, public service facilities, or other public welfare projects. The transferred industrial buildings shall be used to attract key innovative industrial projects and, in principle, may only be leased.
Article 20 Land use rights for M0 projects shall be registered for industrial purposes. The real estate registration authority shall, in accordance with the provisions of the grant contract, indicate on the real estate ownership certificate the wording “Innovative Industrial Land (M0) Project; the transferee must obtain approval from the local government,” to distinguish it from general industrial project land.
Where supporting facilities are constructed on multiple plots, they shall be registered as a single land parcel; the plots where such facilities are located shall not be registered as separate parcels.
Article 21 M0 supporting facilities shall not be registered or transferred in separate parcels. For M0 projects where the grant contract stipulates that industrial facilities may be transferred in separate parcels, after passing the production capacity acceptance inspection and obtaining approval from the local government, procedures for the separate registration and transfer of industrial facilities may be processed. The transfer must also meet the following conditions:
1. The transfer is necessary due to special circumstances, such as the initial public offering (IPO) of incubated enterprises, upstream or downstream industrial chain-related enterprises, subsidiaries, or holding companies;
2. The floor area subject to subdivision registration and transfer does not exceed 50% of the gross floor area of the industrial premises;
3. Subdivision registration and transfer must be conducted using fixed boundaries (such as building blocks or floors) specified in the land supply contract as basic units, and the interior floor area of each basic unit of industrial premises must not be less than 500 square meters;
4. The transferee of the subdivided property must pass the M0 project eligibility review.
The development qualifications, sales management, and capital supervision of the project developer for M0 projects eligible for subdivision and transfer shall be managed in accordance with the relevant regulations for commercial housing. The developer is obligated to inform the purchaser to strictly operate and use the property in accordance with the planned purpose, not to alter the use without authorization, and to clarify the prerequisites for obtaining the real estate ownership certificate, and to explicitly stipulate these terms in the purchase contract with the purchaser.
Article 22: The sale of industrial premises by the developer through the method of sale of completed units constitutes the first subdivision and transfer. Any subsequent subdivision and transfer of industrial premises by the purchaser following the initial transfer shall be deemed a secondary subdivision and transfer. Where industrial premises are injected into other companies as assets through equity transfer, the management model shall be governed by the provisions for secondary subdivision and transfer.For secondary sub-transfers of industrial properties, the original developer or the government shall have the priority right to repurchase the property at the lower of the original contract price or the market appraisal value, as agreed. If the right to repurchase is waived, the industrial property may be transferred on the open market, and the capital gains shall be collected from the transferor by the department designated by the local government in accordance with the agreement. The specific collection ratios are as follows:
1. If less than 3 years have elapsed since the completion of the initial transfer registration, 100% of the capital gains shall be collected;
2. Where three but fewer than five years have elapsed since the initial transfer registration was completed, 50% of the capital gains shall be collected;
3. If five years or more have elapsed since the initial transfer registration was completed, 20% of the capital gains shall be collected.
Capital gains refer to the balance remaining after deducting the original sales price and the relevant taxes and fees already paid by the transferor when acquiring the industrial property from the transaction price of the secondary transfer of the industrial property.
Article 23 Local governments shall strengthen management of M0 projects during the planning, construction, and operation phases, and shall supervise project construction in accordance with the terms of the performance supervision agreement. Relevant municipal departments shall strengthen guidance and supervision.
Article 24. Within three years after an M0 project passes its completion acceptance, the local government shall organize and conduct production capacity acceptance in accordance with the land grant contract and the performance supervision agreement.Upon passing the acceptance, a project full-capacity acceptance opinion shall be issued. For projects where land was granted through a one-time, lump-sum transfer, certificates of real property rights for state-owned construction land use rights and building ownership may be processed. For projects where land was granted under a “lease-to-own” arrangement for the remaining term, procedures for the transfer of the remaining land use rights may be processed upon expiration of the lease term; after payment of the land price, certificates of real property rights for the remaining term shall be issued.
If, during the production capacity acceptance inspection, only the tax revenue target has not been met, the enterprise is permitted, in accordance with the terms of the performance supervision agreement, to make a supplementary payment equal to twice the difference between the actual and target tax revenue, and the inspection shall be deemed passed. If the production capacity acceptance inspection is not passed, the local government shall order rectification within a specified time limit, which shall not exceed one year; if this exceeds the lease term under the “lease-to-own” arrangement, a supplementary agreement may be signed to extend the lease term.If the production capacity acceptance is still not passed by the deadline, the land grant (lease) contract shall be terminated in accordance with the provisions of the Performance Supervision Agreement, the right to use the construction land shall be reclaimed, and liability for breach of contract shall be pursued as stipulated in the contract. The land price shall be refunded after deducting the corresponding remaining term from the original grant price; compensation for above-ground buildings (structures) and immovable equipment and facilities shall be based on their assessed residual value, or the local government may repurchase them in accordance with the aforementioned requirements.
Article 25 After an M0 project passes the full-capacity acceptance inspection, the local government shall continue to supervise the project for at least three years in accordance with the Performance Supervision Agreement. During the supervision period, if tax revenue targets fail to meet the agreed requirements, the shortfall must be made up as required by the Performance Supervision Agreement; if other indicators fail to meet the agreed requirements, a penalty shall be paid as required by the Performance Supervision Agreement.
Article 26 The project developer shall establish operational management regulations for the M0 project and strengthen daily supervision of tenant enterprises, including:
1. Assisting the local government in establishing files for tenant enterprises, conducting unified registration of tenant enterprises, and regularly compiling statistics on their industrial output, fiscal contributions, R&D investment, and comprehensive energy consumption;
2. Strictly supervising the use of project premises by tenant enterprises; upon discovering any violations, ordering rectification within a specified timeframe and promptly reporting to the local government.
Article 27 Where M0 land is integrated with commercial and service land comprising a certain proportion (less than 50%) of the gross floor area through unified planning and mixed-use development, the municipal government shall authorize the local government to organize public land auctions.
Article 28 The management of M0 within the Ningbo Area and Ningbo Hub Area of the China (Zhejiang) Pilot Free Trade Zone shall be implemented in accordance with these Measures. In principle, the scale of M0 shall not exceed 10% of the total industrial land area within the control lines of the industrial zones in each area. Specific operational rules shall be formulated by each area based on its own circumstances and implemented after approval by the municipal government.
Article 29 These Measures shall take effect on August 22, 2024, and remain valid for three years. These Measures shall be implemented in parallel with previously issued relevant policies, and project developers may independently choose which policies to apply.
