Guangzhou seeks new model

A bird's-eye view is seen of Guangzhou, where demand for financial services to help sustain business growth has risen, and the local authority has plans to develop an international financing trade platform. [Photo / Xinhua]

The development of a regional finance center will push up a new model for urbanization and accelerate industrial upgrading in Guangzhou, the capital of Guangdong province, an official said on Tuesday.

Zhou Jianjun, director of the Guangzhou Financial Affairs Office, said at a news conference on Tuesday that the city government had issued a bold overall plan to develop a regional finance center to offer financial support for a new round of economic development.

"The plan will be of great significance to the transformation of the city's traditional industries and will build a new model for urbanization," said Zhou.

According to the Planning on Constructing a Regional Financial Center, which was earlier approved by the Party committee of Guangzhou and the city government, the local authority will give priority to the development of an international financing trade platform and a financial functional zone in the years ahead.

Services will cover international business, traditional industries, science and technology, rural credit and private financing, according to Zhou.

According to the plan, the city will develop about 150 to 200 listed companies by 2015.

Local authorities will introduce more international financial organizations to the Guangzhou International Finance Town, which is located in the booming central business district of Zhujiang New Town, Zhou said.

Construction of the finance town, which covers an area of 7.5 square kilometers, is expected to be completed by 2016, sources with the local government said.

If the overall plan is brought on line on schedule, the added value of finance of Guangzhou will account for more than 8 percent of its gross domestic product by 2015 and 10 percent by 2020, said Zhou.

"The plan will lay a solid foundation for building up Guangzhou as an international regional financial center, making the city play a supplementary role for Hong Kong in international financial cooperation," Zhou said.

The proportion of the added-value of finance in Guangzhou increased from 3.87 percent of its GDP in 2006 to 7.05 percent in 2012, according to Zhou.

Liu Shaobo, director of the Finance Research Institute of Jinan University, said a financing trade platform will play a key role for the local authority to develop a regional finance center.

"Construction of the financial trade platform is of more importance than the expansion of financial organizations because the platform will help gather more financial resources," said Liu.

Liu said efficient financial support will further accelerate industrial development in the Pearl River Delta.

"Businesses in the city have developed a strong demand for financial services to help sustain business growth," Liu said.