How can Guangdong develop a “financial ecosphere”?
According to Shi Wei, an economist from the Institute of Economic Systems and Management of the National Development and Reform Commission, Guangdong needs “story-tellers” with an international view and a long-term plan to introduce Guangdong and its advantages to overseas institutions.
Indeed, Guangdong has many strengths when compared with other regions. For example, the overall air quality in the Pearl River Delta is better than that in the Beijing-Tianjin-Hebei Region or the Yangtze River Delta.
Moreover, Guangdong has a thriving financial industry. In 2017, Guangdong enjoyed an increase in social financing, and maintained its nationwide lead in major financial indicators including the scale of cross-border capital flow.
Wu Kegang, President of the British-Chinese Chamber of Commerce in the UK, holds another view that Guangdong also needs to change its current methods of investment promotion.
He thinks that instead of attracting investment from Fortune Global 500 enterprises, Guangdong should mainly introduce financial institutions adjusted to local economic development and SMEs providing services to the financial industry.
Wu’s second suggestion is for Guangdong to provide professional answers to questions from financial institutions. “These institutions will go to Guangdong only on the condition that they have all the answers they need to dispell their doubts.”
Tax reduction is also effective, as Darlene Chiu Bryant, Executive Director of ChinaSF, has pointed out, “San Francisco has celebrated more risk investment and the establishment of more enterprises since the tax rebate in 2011.”
University education and talent may also constitute a key factor, according to tenured Professor Cui Yi from the School of Engineering, Stanford University. He says “a lot more talent will definitely be attracted to Guangdong if the province has universities tied to both Peking and Tsinghua Universities”.