Greater Bay Area an exciting story for China

The Pearl River Delta region is getting ready for its biggest transformation ever. The region is already an industrial powerhouse in southern China, comprising Guangdong province, and the Hong Kong and Macao special administrative regions. Now, it will get an upgrade thanks to the impending announcement of the Greater Bay Area plan - China's ambitious proposal to transform the region into a technology powerhouse to rival the likes of the San Francisco and Tokyo Bay areas.

There is evidence to show manufacturers in the region are optimistic about the Greater Bay Area's prospects. In our (Standard Chartered Bank's) ninth annual survey of the region's clients, almost half said they see new business opportunities arising from the Greater Bay Area in the next three to five years. This comes despite concerns over the yuan's volatility and a potential US-China trade war.

Our survey also shows that industrial upgrading is already happening amid resilient growth, rising wages and labor shortages. Wage growth continues to rebound from a 2016 trough, matching the underlying improving economic cycle. Wages are expected to rise by an average of 7.7 percent this year, up from 6.3 percent in 2017, and a 5.9 percent trough in 2016.