As one of the core indexes assessing the ranking and competitiveness of central cities, Guangzhou’s financial industry showcases a robust growth and takes the lead across China. On March 17, at the Guangzhou Municipal Financial Work Meeting, the reporter learned that Guangzhou’s financial industry increased 133% in terms of added value from 2011 to 2016. The growth rate of Guangzhou is higher than that of Beijing(108%), Shanghai(113%) and Shenzhen(84.1%). Especially in 2016, Guangzhou’s financial industry maintained robust growth in direct financing, insurance industry and new OTC market etc.

“Zurich Insurance Group Guangdong Branch moves in; International Finance Forum permanently settles down; China Venture Capital Forum is held in Guangzhou and Shenzhen in turn...” Since last year, with the optimization and improvement of the business operation, promotion and maintenance environments Guangzhou has embraced a wave of settlement of national and international high-end projects. The wave offered enormous development potential for Guangzhou’s construction of international regional financial center. In 2017, Guangzhou strives to achieve 200 billion yuan in the added value of financial industry, with financial industry accounting for 9.5% in its GDP.

Eye-catching innovation and growth achievements, direct financing accounting for 65% of the total and realizing 25 billion yuan cost reduction for enterprises

“Finance is the main competition battlefield for cities, especially for central cities. To consolidate its 3^rd place in the ranking list Chinese cities, Guangzhou has to gain points in finance instead of lose points,” said Chen Zhiying, member of the Standing Committee of CPC Guangzhou Committee and executive vice mayor of Guangzhou, “In the long term, Guangzhou should build a regional financial center in compliant with its position as a national central city.”

Statistics indicate that the gaps between Guangzhou and Shenzhen, Shanghai, Beijing in financial aggregate are gradually narrowed. Guangzhou’s financial industry increased 133% in terms of added value from 2011 to 2016. In 2016, the added value of Guangzhou’s financial industry hit 180 billion yuan, becoming the city’s five biggest pillar industry instead of real estate, accounting for 9.2% of the city’s GDP and achieving GDP contribution rate of 12.1%.

Meanwhile, Guangzhou becomes one of the regions with the most active direct financing in China. In 2016, the city’s direct financing balance was 1.35 trillion yuan, only next to Shanghai (1.49 trillion yuan) among big cities, accounting for 60.7% of the province’s direct financing balance(incl. Shenzhen), accounting for 65.7% of social financing which ranks the 1^st among big cities. According to the introduction of Qiu Yitong, director-general of Guangzhou Municipal Financing Work Bureau, Guangzhou’s enterprises applied issuance of stocks and enterprise bonds or other modes more frequently in direct financing, which reduced financing cost of over 25 billion yuan for enterprises.

Along with the robust growth in various data, Guangzhou also made all-round breakthroughs in driving governmental funds to have innovations and explorations in taking part in the establishment of industrial guidance funds.

As one of China’s earliest cities that explored to establish governmental guidance funds, by 2016, Guangzhou had preliminarily set up the city-district two-level governmental investment fund system. At the city level, a guidance fund system covering industrial transformation and upgrading, industrial development, small- and medium-sized enterprises, sci-tech innovation and urban renovation has taken shape. At the district level, the districts including Yuexiu, Tianhe, Panyu, Guangzhou Development District and Zengcheng has established guidance funds.

Establishing the objective of 200 billion yuan added value , planning to build the 1+N industrial financial policy system

Due to the eye-catching performance of Guangzhou’s financial industry in growth and innovation, Guangzhou was favored by many more big financial projects. Recently, the agreements on the move-in of southern headquarters of China Galaxy Financial Holdings Co.,Ltd. and China Securities Quotation to Guangzhou International Financial City were signed. At the meeting, Qiu Yitong said that China Securities Quotation Southern Headquarters will be officially opened and go online on March 19 to remedy Guangzhou’s short board in the absence of a nationwide financial transaction platform all along. In addition, Guangzhou will strive to complete the move-back of the headquarters of Guangfa Funds, Efunds and other large financial institutions.

Moreover, two financial events with great influence home and abroad will be held in Guangzhou. The 19th China Venture Capital & Private Equity Forum is scheduled to be held at the end of May. 2017 IEF Annual Global Forum and other activity series is to be held in November. Qiu Yitong called on the meeting deputies to offer assistance, jointly hold the two new events successfully and help Guangzhou develop from a regional financial center to an international financial resource distribution center.

A group of data materialize the growth objective of Guangzhou’s financial industry: striving to achieve added value growth of 11% and hit 200 billion yuan; the added value to account for 9.5% of GDP and drive one percentage point GDP growth; and total assets of financial industry reach 6.5 trillion yuan.

In order to further give play of finance’s service to real economy, Guangzhou Municipal Financial Work Bureau planned to issue the Master Plan for Guangzhou’s Construction of Financial Center and special financial policies for automobile, business, shipping, aviation, culture and green development sectors, thus setting up the 1+N industrial financial policy system. In addition, the city will issue supportive policies for accelerating the construction of modern financial service system, regional financial center and South China Wealth Management Center etc.

Source: Translated from Invest Guangzhou, March 18, 2017