A new local rule to lure talented Chinese living overseas to return home is expected to be passed soon.

Shenzhen lawmakers were drafting a rule that would define the term "returned overseas talent" for the first time, Monday's Shenzhen Special Zone Daily reported.

According to the draft, only highly educated and skilled individuals will be regarded as "returned overseas talent" and be eligible for preferential policies in Shenzhen.

The "returned overseas talent" would include: people who have a doctorate from foreign universities; people who have obtained a master's degree or a professional title equivalent to associate professor in China and then studied or worked in foreign universities or research institutes for two years, or worked at technological or managerial posts in top multinationals for three years; people who have made prominent contributions which are recognized by the Shenzhen Municipal Government.

To attract more overseas talents to invest in Shenzhen, the draft stipulates that if talented individuals who return from overseas are to establish a joint venture by contributing their technology or patent in exchange for shares, Shenzhen will not put a ceiling on the ratio of such shares to the registered capital.

(Shenzhen Daily September 1, 2004)