High-earning service industries should make up half of Shenzhen's GDP by 2010, Mayor Xu Zongheng announced Thursday as he unveiled initiatives to help boost the sectors.

Shenzhen will speed up the development of high-end service industries in 2007, Xu told a press conference at the Citizens' Center.

High-end service industries, which refer to high-value-added, high-tech and environmentally friendly service sectors, are the subject of the city government's No. 1 paper for this year.

The paper, which was revealed at the press conference, promised strong financial support and preferential policies for the industries. It prioritizes eight sectors, including creative financial services, modern logistics, professional services such as law, accounting and consultancy, Internet and telecom services, outsourcing, creative design, exhibitions and up-market tourism.

With its service industries' total turnover ranking fourth among major Chinese cities, Shenzhen has "a solid base" and "bright future" to further develop the service sectors, said Xu.

The added value of the service industries grew 13.6 percent annually from 2001 to 2005. Its contribution to the city's GDP, however, dropped from 50.1 percent in 2001 to 46.6 percent in 2005, as the manufacturing industries grew faster.

According to the plan revealed at the press conference, the added value of the service industries should climb by 14.5 percent annually between 2006 and 2010 and contribute to more than 50 percent of GDP by 2010.

"Developing the high-end service industries will make the city more mature and reduce risks in economic growth," said Xu, adding that manufacturing industries would not be weakened.

To attract foreign investment in the high-end service sectors, the government paper said Shenzhen would pilot easing regulations for foreign investment, increasing the upper limits for foreign shareholdings and expanding the business scope of foreign-invested high-end service companies.

Subsidies will be given to Sino-foreign joint venture projects in the field. Well-known companies that establish new headquarters or account settlement centers in Shenzhen will get 500 yuan (US$64) in subsidy for each square meter of office space they buy in Shenzhen, or receive a subsidy of 30 percent of their office rent, according to the paper.

Local service outsourcing companies that receive certain internationally acknowledged certificates can receive subsidies of 300,000 yuan to 500,000 yuan, according to the paper.

The paper also plans to cultivate 10 nationally influential service companies by 2010.

Some service companies in Shenzhen are already doing very well, said Xu, citing Shenzhen port, Shenzhen airport, China Merchants Bank and Pingan Insurance as the "pillars of high-end service industries."

Xu said Shenzhen would learn from Hong Kong in developing service industries.

Editor: Yan