Commissioned by King & Wood Law Firm, the Unirule Institute of Economics participates in the research project of "Cooperation Mode and Development Organizations in Lok Ma Chau Loop," and is mainly responsible for research on "Public Administration Policies Concerning Promotion of Factor Flow."

The title of Lok Ma Chau Loop belongs to Shenzhen, while its administrative right belongs to Hong Kong. The Separation of these two rights makes this district a "special area" between the two special zones. At present, the Shenzhen government and the Hong Kong government start preparation for joint exploitation of Lok Ma Chau Loop. Nevertheless, an important thing to do before exploitation is to clarify the mechanism for development and distribution of profits, and formulate relevant policies to promote flow and integration of factors. Under current policy framework of CEPA, deep-level institutional arrangement for Hong Kong and Shenzhen's economic cooperation has been enhanced. However, many institutional obstacles remain to be cleared so as to realize free flow of factors. The Unirule aims to provide relevant suggestions on reducing obstacles hindering factor flow among Shenzhen, Lok Ma Chau Loop, and Hong Kong, through a through review and problem research on the status quo of flow of factors, such as, people, commodities, funds, information, etc. This is the basic condition to guarantee realization of development strategy of Lok Ma Chau Loop and to promote industrial and social development.