Financial sector drives growth in metropolis

The Chinese central government's approval of Qingdao's application to develop the city into a Wealth Management and Comprehensive Financial Reform Pilot Zone in February 2014 has already proven a great success.

In two years, the financial sector in Qingdao has witnessed rapid growth. Its share of the city's gross domestic product increased from 4.2 percent in 2010 to 6.3 percent last year.

The added value of Qingdao's financial industry hit 58.8 billion yuan ($9.05 billion) last year, 2.5 times more than in 2010.

In the past two years, Qingdao has piloted 35 new financial policies. It was one of the first cities in China to recognize patent rights' qualification as a loan mortgage, which helps small and medium-sized enterprises secure financial support.

Qingdao has been included in the Global Financial Center Index (GFCI) for the first time, ranking 79th in April. The index is released by Z/Yen Group, which started the annual survey in March 2007.

Deutsche Bank set up its Qingdao branch in 2013, and the Sino-German Allianz Insurance Company was founded there last year. Qingdao had 34 foreign financial agencies by the end of last year, accounting for 90 percent of the total in Shandong.

There are 11 private banks in the city, managing more than 70 billion yuan in funds. About 150 private capital funds are registered in the city.

Since its opening in April 2014, more than 300 enterprises have been involved in transaction activities in the Qingdao Blue Ocean Equity Exchange Center, raising more than 2.7 billion yuan.

Since June last year, 25 Qingdao enterprises have borrowed 2.65 billion yuan from South Korean banks.

The Qingdao government attaches great importance to diverting financial resources to the ocean-related economy, and supports the upgrading of service sectors, technological innovation and the raising of public welfare.

The city government attributes Qingdao's robust economic growth against the backdrop of a slowdown in the Chinese economy, in part to the rapid development of the financial industry.

Qingdao's GDP hit 930 billion yuan last year, up 8.1 percent year-on-year. The service sector's growth was 9.4 percent, and its added value last year was 491 billion yuan. The service sector that includes finance accounts for 52.8 percent of the city's economy.

Jinjialing is the core area of Qingdao's financial industry. Located in Laoshan district, it hosts more than 170 capital funds, which control more than 100 billion yuan.

Wang Rongtao, general manager of Shandong Provincial Financial Property Management Company's Qingdao branch in Jinjialing, said: "Many financial agencies look forward to setting up their business in Jinjialing, because all kinds of financial companies are concentrated in this area. It's convenient to do business here."

xiechuanjiao@chinadaily.com.cn

(China Daily 07/04/2016 page6)