China Daily Global Edition (USA)
Guangzhou seeks finance role
Hong Kong, London and New York are already global financial powerhouses and Guangzhou is eager to join them.
Guangzhou, a southern port city that is the capital of Guangdong province, brought its 2018 financial road show to New York on Friday. The city is eager to demonstrate its prowess in financial services and lure new companies and professionals to the area.
Guangzhou will offer incentives for companies to locate in the city, including for any newly established or settled financial institution an award of up to $3.9 million based on the registered capital
“As one of the birthplaces of finance in China, Guangzhou is ready to become a global financial center,” Qiu Yitong, director of the Guangzhou Financial Affairs Bureau, said in a video presentation at the event.
“Guangzhou is one of the originators of the modern financial system in China,” noted Chen Ping, deputy director of the financial affairs bureau, in remarks to attendees.
Guangzhou already possesses a roster of financial services assets. The city is home to offices of 289 of the Fortune 500 companies. Guangzhou’s financial sector has developed rapidly with industrial value-added figures increasing 133 percent over the past five years, ranking first among Chinese cities.
The city is a neighbor to Hong Kong, already an established financial stalwart in Asia and the world. Chen believes there will be enough demand for financial services in China and Asia to carry both cities.
“I think they will coexist and learn from each other. Hong Kong is already well developed, and Guangzhou can learn from its economic experiences,” said Chen. “In terms of serving the mainland, Guangzhou has a geographic advantage compared to Hong Kong. But we want to cooperate with Hong Kong, and together we can create an international financial destination.”
Rajesh Singh, a managing director at Bank of America, said not only is there room for both Hong Kong and Guangzhou in China and Asia, but that the cities are “complementary” to one another.
“Hong Kong has some historical advantages, but Guangzhou has the advantage of a large infrastructure and can be an access point for China,” he said.
Guangzhou was the main port of the ancient maritime Silk Road. According to Singh, Guangzhou could become a financial hub for China’s Belt and Road Initiative project that aims to create a network of railways, roads, pipelines and utility grids linking Asia with Europe and Africa.
“Guangzhou is similar to St. Louis in the US, which is considered the gateway to the west, only Guangzhou is the gateway to the east and north and the rest of China,” said Singh. “It can be a crucial point and play a long-term role in the project.”
Guangzhou is prepared to offer incentives to companies to locate in the city, including for any newly established or settled financial institution an award of up to $3.9 million based on the registered capital.