Greater Bay Area cluster presents broad spectrum of opportunities

As the world's second-largest economy reinforces the theme of regional collaboration to create a globally competitive cluster of metropolises in the Pearl River Delta, the high-profile Guangdong-Hong Kong-Macao Greater Bay Area spells potentially huge opportunities for investors with the foresight to seize the chance.

"The Greater Bay Area has proven to become a growth engine for the Pearl River Delta region. For investors like us, we cannot afford to miss the boat," Yu Huangliang, general manager of the Hong Kong office of Shenzhen Capital Group, told the Cyberport Venture Capital Forum in Hong Kong on Wednesday.

"Each of the 11 cities across the Greater Bay Area is known for its characteristics and corresponding investment themes. This is what makes the great story unfolding in the region so attractive to investors," said Ou Kesheng, analyst at IDG Capital.

The twin cities of Hong Kong and Shenzhen are famous for a galaxy of tech talents. Shenzhen, dubbed as the country's "Silicon Valley of hardware", is where you can expect to build an iPhone from scratch using parts sourced from its iconic electronics marketplace of Huaqiangbei, Ou noted.

Guangzhou, the capital city of Guangdong, is riding high on a consumption trend that targets the rising purchasing power of the swelling middle class, while Foshan bets big on its well-established chain of heavy industries.

Dongguan, home to two of the nation's "Big Four" smartphone giants - Oppo and Vivo, which not only take the mainland market by storm but make inroads into India, Russia and even Africa - is also looking to join hands with its regional peers and make a difference, Ou added.

Artificial intelligence, healthcare, consumption upgrading and entertainment are expected to be the most promising investment themes across the globe. Under every theme, there is no shortage of budding startups in the Greater Bay Area to place bets on, he reckoned.

As the Greater Bay Area remains on track to become a magnet for up-and-coming entrepreneurs all over the world, the region will see a multi-layer of startups catering to different groups of investors come into being, said Cai Dongxiang, chief executive of Shenzhen-based Zhengtai Luoli.

"This calls for entrepreneurs finding their places in the startup scene. It's impossible for every firm to become a unicorn (startup valued at over $1 billion). What matters is to make the best of your competitive edge, and be part and parcel of what's going on in the region," Cai said.

"A population of more than 70 million in the Greater Bay Area really dwarfs a population of over 3 million in the San Francisco Bay Area," Edith Yeung, head of Greater China at 500 Startups, said. "It may be a superficial comparison. But it indicates how much potential in the Greater Bay Area waiting to be unleashed."

"There is a wealth of good startups in the region that should be introduced to investors abroad, and there is a constellation of interesting projects overseas that can be brought back to the Greater Bay Area.

"For investors, all of these highlight the golden opportunities ahead that we cannot miss out on," Yeung said.

sophia@chinadailyhk.com

(HK Edition 11/02/2017 page18)