Dongguan enterprises should embrace capital and technology more actively and make different developments from Shenzhen and Guangzhou, industry experts said on Wednesday.

Dongguan, the world's manufacturing hub, is striving to upgrade its industries by pushing forward with intelligent manufacturing.

Gong Fangxiong, chairman of China Investment Bank and former managing director of JP Morgan Chase& Co Asia Pacific, said the key to achieving success is capital and technology.

"Dongguan entrepreneurs in the manufacturing industry need to further raise their awareness of capital, no matter at what rate their enterprises are developing, whether they are in the initial phases or mid-way. It is important to integrate traditional manufacturing with capital," Gong told World Dongguan Entrepreneurs Capital Summit.

The 2016 World Dongguan Entrepreneurs Capital Summit. [Photo provided to chinadaily.com.cn]

"Local enterprises also need to engage more in the international market in order to acquire the world's most cutting-edge technology."

The capital summit is part of a series of events at the 2016 World Dongguan Entrepreneurs Convention, held in Dongguan from Wednesday to Thursday.

Gong's view was echoed by Chen Wei, chairman of Shenzhen Oriental Fortune Capital Co Ltd, a venture capital firm.

"Dongguan enterprises should move themselves more towards the capital market. More listed companies can be developed in the city," he said.

Chen also noted that 80 percent of those enterprises that his company invested in and which later failed owing to human factors.

"Dongguan entrepreneurs are known for their low-key and down-to-earth spirit. This is where their advantage lies."

Liang Guozhi, vice-president of the company, said Dongguan doesn't need to develop industries where Shenzhen and Guangzhou have advantages.

Instead, it can make efforts in other areas like new energy and biopharmacy.

Meanwhile, a private equity fund, jointly initiated by the government of Dongguan, World Dongguan Entrepreneurs Federation and Dongguan Innovation Center of the Research Institute of Tsinghua University in Shenzhen, was officially launched at the summit.

The fund, worth 300 million yuan ($44.99 million), aims to enhance Dongguan's internationalization capacity and to promote the transformation and upgrade of its industries, by attracting outstanding projects to set up and grow in the city.

It will focus on investing in fast-growing, promising enterprises in emerging industries, such as intelligent equipment, electronic information, environmental protection, new material, and new energy.

sally@chinadailyhk.com

A worker with Huajian Group examines women's shoes prior to packaging.Zheng Zhibo / For China Daily