30 November 2015, Shenzhen Qianhai Shekou Free Trade Zone Power Supply Co., Ltd. was officially established in the Qianhai Shekou Free Trade Zone (FTZ), Shenzhen, becoming China’s first incremental placement based mixed ownership power supply enterprise. Responding to Several Opinions on Further Deepening the Reform of Electric Power System issued by the State Council, the project took the initiative in attracting and injecting social capital into the incremental distribution network, which is of prospective significance in promoting and exploring the reform of mixed ownership. Shenzhen Qianhai and Shekou districts are important components of Guangdong FTZ. The power supply business in the area is the brand new incremental distribution business, which is in conjunction with the guidance on the liberalization of incremental distribution investment in the reform of electric power system.

Shenzhen Qianhai Shekou Free Trade Zone Power Supply Co., Ltd. was jointly formed by Shenzhen Power Supply Co., Ltd., the subsidiary of China Southern Power Grid Company Limited, China Merchants Property Development Co., Ltd., the subsidiary of China Merchants Group, Shenzhen Neng Zhi Hui Investment Co., Ltd., the subsidiary of China General Nuclear Power Corporation, Yunnan Wenshan Electric Power Co.,Ltd. and Shenzhen Qianhai Development Investment Holding Co., Ltd. The company brought together the resources from a number of top quality enterprises in power supply, energy and other industries, and provides stable power supply to the rapid development of the FTZ.

As the perennial legal counsel of China Southern Power Grid Shenzhen Power Supply Co., Ltd., King & Wood Mallesons acted as the legal counsel in the project, providing legal advice to project negotiation, cooperation agreement and documentation for the establishment of the company. The KWM legal team was led by Guangzhou office partners James Zeng and Zhang Tiandi.