Beijing's Mentougou to build $3b finance center

A $3 billion financial and trade complex that includes a seven-star hotel will be built in Beijing's Mentougou district, an executive director at Hong Kong Huatong Investment Holdings Ltd said on Thursday.

"We are bullish on China's strong purchasing power and the complex can be a Beijing landmark," said Ou Donghao after the signing ceremony for the deal at the 17th Beijing-Hong Kong Economic Cooperation Symposium.

Ou said that Prince Bandar, chairman of Huatong Investment and of the Middle East and Gulf Investment Group, negotiated with Mentougou district government for about two years, and the project will begin construction in 2014. The investment for the first phase will be about $1 billion.

The project is still being finalized, but the hotel will be similar to seven-star hotels that operate in Dubai. The hotel will have a heliport for guests, Ou added.

In addition to the hotel and a convention center, the complex will include a financial and trade center with an international oil trading platform, high-end apartments, and a Middle East trade center.

"This project is good for Beijing's tourism," said Su Hong, deputy director of the Beijing Investment Promotion Bureau. "Beijing has advantages in terms of policies, resources and market volume, and we very much welcome foreign investment."

Fifteen deals were inked at the symposium, including several for the financial and trade complex, which totaled $7.1 billion. The deals were for sectors such as modern services, cultural industries and tourism.

One party to the deals, venture capital firm Sequoia Capital signed a 160 million yuan ($26.3 million) contract to invest in a recovery program for the Peking University International Hospital in the capital's Changping district.

A cultural industries project with an investment of 4 billion yuan will also be built in Fengtai district by property developer Century City, while Emperor Group will invest 2.6 billion yuan to build its headquarters on the Chinese mainland.