Alibaba, Ten­cent to set up units in Xion­gan New Area

China Daily (Hong Kong) - - BUSINESS - By CHENG YU and MA SI Con­tact the writ­ers at chengyu@chi­nadaily.com.cn

Chi­nese cor­po­rate be­he­moths Alibaba Group Hold­ing Ltd, Ten­cent Hold­ings Ltd and Baidu Inc will set up branches in China’s Xion­gan New Area.

They are among the first batch of 48 com­pa­nies that have been ap­proved to be set up in this new eco­nomic area. The move is part of the gov­ern­ment’s en­deavor to ex­pe­dite the con­struc­tion of the Xion­gan New Area in He­bei prov­ince.

The new area was an­nounced ear­lier this year. The project aims to re­lieve the pres­sure of pop­u­la­tion on Bei­jing and build an­other eco­nomic pow­er­house along the lines of those built near Shen­zhen and Shang­hai.

Alibaba an­nounced on Fri­day it will set up three sub­sidiaries in Xion­gan with a to­tal reg­is­tered cap­i­tal of 160 mil­lion yuan ($24 mil­lion).

Ren Geng, gen­eral man­ager re­spon­si­ble for Alibaba’s busi­ness in Xion­gan, said: “We will co­op­er­ate with the Xion­gan New Area mainly in ar­ti­fi­cial in­tel­li­gence, fintech and in­tel­li­gent lo­gis­tics to add a smart ‘brain’ to Xion­gan to help it func­tion in a well-rounded way.”

Ac­cord­ing to the ad­min­is­tra­tive com­mit­tee of Xion­gan, among the 48 en­ter­prises in the first batch to be set up in the area, 14 will fo­cus on in­for­ma­tion tech­nol­ogy, 15 on fi­nan­cial ser­vices and seven on high-end tech­nol­ogy.

Xion­gan will be built as an eco-friendly smart city. Four key busi­ness seg­ments — en­vi­ron­men­tal pro­tec­tion, traf­fic sen­sors, large data anal­y­sis and ar­ti­fi­cial in­tel­li­gence — are to be its driv­ing forces.

In­ter­net-based busi­ness player Ten­cent on Tues­day also

We will ... add a smart ‘brain’ to Xion­gan to help it func­tion in a well­rounded way.”

Ren Geng,

set up a sub­sidiary in the new area with a reg­is­tered cap­i­tal of 20 mil­lion yuan, ac­cord­ing to Tianyan­cha, an en­ter­prise data query sys­tem.

The af­fil­i­ate, in which Shen­zhen-based Ten­cent holds a 90 per­cent stake, will pro­vide ser­vices like soft­ware and hard­ware de­sign, data pro­cess­ing and stor­age.

“As the first group of in­ter­net-based firms en­ter­ing the Xion­gan New Area, Ten­cent will help pro­mote its de­vel­op­ment with our rich ex­pe­ri­ence in smart city, smart trans­porta­tion and the in­ter­net of things,” said a Ten­cent ex­ec­u­tive.

Half of the first group of 48 com­pa­nies are from Bei­jing while 13 are Shen­zhen-based. And 19 firms are cen­tral SOEs while 21 are pri­vate firms.

In all, 21 are pri­vate firms. Among them are Jing­dong Fi­nance, 360 Qi­hoo, Shen­zhen Kuang-Chi, China Telecom, Peo­ple’s In­surance Com­pany of China and the State De­vel­op­ment & In­vest­ment Cor­po­ra­tion.

He Wei con­trib­uted to the story.

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