News

Zhengzhou strives to become financial hub

By Wen Li (China Daily)
Updated: 2009-12-17 07:59

A panoramic view of Zhengzhou

Authorities in Zhengzhou, capital of central China's Henan province, are laying the groundwork to build the city into a regional financial hub, said Wang Wenchao, Party chief of the city committee.

Following a master plan designed and adopted by city authorities, a new 300 sq km zone is now under construction. Some 80 billion yuan has been invested in the project to date.

The area under construction is designed to be a core area for regional financial services.

"We vow to spare no effort to advance the construction of the financial center," Wang said.

The efforts include improving the current financial system, developing capital markets and advancing reforms at financial institutions.

The move is in line with central government efforts to establish banks across central provinces and develop local financial institutions including insurance firms.

Attracting financial operations from home and abroad and nourishing rural financial organizations are also key to initiatives to overhaul and renovate the city's financial system, according to Wang.

Strategic investors are now being courted to participate in the reform of the local financial system while more large financial firms are encouraged to open banking, investing, securities or insurance operations in Zhengzhou, Wang said.

He added that authorities should encourage capital markets to trade in stocks, futures and securities and help more local companies to go public.

"Financial innovation is crucial to the healthy growth of capital markets. Authorities should also extend great support to commodity exchanges in their reforms and innovations to increase their weight in the global pricing system for bulk cargos like grain, cotton, oil and sugar," Wang noted.

Henan is a key agricultural province, while Zhenghou, a booming commercial hub, has long been a trade center for bulk agricultural cargo.

Opportunities

Even "in the face of the remaining impacts from the global recession, we have confidence in achieving our goal to develop the new area", Wang said.

His faith is backed by the national strategy of promoting the rise of the central regions, strong capital inflows and the continuing worldwide trend of shifting industries to emerging economies, according to Wang.

He added the new area, which will link Zhengzhou and its neighboring city Kaifeng, will play an instrumental role in the region's future.

"We wish to build the area up as a national model for healthy growth and balanced development of both urban and rural economies.

"Over five to 10 years of development, the area will evolve into a regional center of logistics, finance and modern manufacturing.

"As an expected engine to drive economic growth in the entire province and a pilot area for comprehensive reforms, the area's construction is of great significance."

Wang stressed that the city's robust economic growth provides a boost to its urban expansion.

Despite economic turmoil in 2008, Zhengzhou generated 300.4 billion yuan in gross domestic product, a year-on-year increase of 15 percent.

A widespread transportation network and advantageous geological position - well positioned to link the western and eastern regions - as well as a strong commercial traditions "create an ideal business-friendly environment, which is a key element behind the boom", Wag said.

With a history stretching back 3,600 years, the city was the capital of five dynasties, endowing it with an affluent cultural heritage.

"We are stepping up to develop Zhengzhou as an appealing eco-friendly city both for residence and business. The modern and international city will also showcase its charm of traditional Chinese culture and local customs."

As Zhengzhou's construction made progresses, delegations from 500 other cities have paid visits to learn from its construction experience.

(China Daily 12/17/2009 page6)