Financial Street attracting HK entrepreneurs
By Jia Hepeng (China Business Weekly)
Updated: 2004-09-13 10:17

Financial Street, the capital's business hub, caught the attention of numerous Hong Kong investors during the Eighth Beijing-Hong Kong Economic Co-operation Symposium earlier this month.

The event was held in Hong Kong.

"The development of Financial Street will be based on greater involvement of Hong Kong and foreign financial institutions," Lin Duo, director of Xicheng District's government, told the symposium.

Financial Street is located in the district, which is part of Beijing's downtown area.

Headed by Lin, Xicheng District organized a large delegation that attended the symposium.

The delegation included members of the Xicheng Bureau of Commerce, Xicheng Development and Reform Commission and Financial Street Holding Co Ltd.

Financial Street Holding Co Ltd is the sole developer of Financial Street, which is the key programme Xicheng's district government introduced to Hong Kong investors during the symposium.

China is scheduled to open renminbi business to foreign banks on December 11, which will make it easier for Financial Street to attract foreign businesses.

Since the Yuan Dynasty (1271-1368), the area has been the gathering place for China's banks. It became Beijing's financial centre during the Qing Dynasty (1644-1911).

China's first modern commercial bank was established in the late 19th century by the Qing Government.

The State Council in 1993 decided to establish a national financial centre in the area, to ensure the financial hub maintained its glorious tradition.

Since then, the 1-square-kilometre Financial Street -- home to the People's Bank of China, the China Securities Regulatory Commission, China Insurance Regulatory Commission and China Banking Regulatory Commission -- has evolved into a decision-making centre.

Many of China's commercial banks and major conglomerates have established their headquarters on Financial Street.

More than 1,200 government departments, financial institutions and corporations -- including the Bank of China, the Commercial and Industrial Bank of China and China Life Co Ltd -- have also established their headquarters on Financial Street.

Five of China's 11 companies on Fortune's global 500 list have headquarters on Financial Street.

The firms and banks based on Financial Street manage combined assets in excess of 18 trillion yuan (US$2.17 trillion).

The banks and firms control 90 per cent of the outstanding bank loans in China, and 65 per cent of the insurance revenues in the country.

The daily capital flow on Financial Street surpasses 10 billion yuan (US$1.21 billion).

Lin told the symposium officials of Xicheng District and Financial Street are well prepared to welcome the Hong Kong and foreign financial investors after December 11.

Financial Street Holding announced in 2002 it planned to invest 20 billion yuan (US$2.4 billion) over five years to enhance the development of Financial Street.

All major projects on Financial Street will be launched this year. That will make the business hub one of the top selections for foreign financial businesses opening offices in China, Wang said.

Some 1.2 million square metres of luxury office space have been completed, and all developments in the area will be put into use before the end of 2007.

More than 10 major projects -- totalling 900,000 square metres -- will be launched this year. That will raise to 1.8 million square metres, the amount of property to be developed.

Major projects to be launched on Financial Street include four high-grade office buildings, two five-star hotels, the Financier Club, the 80,000-square-metre shopping and recreation complex lifestyle centre and a street of trendy bars.

Two top international hotel management companies -- the Ritz-Carlton and The Westin -- have announced plans to manage the two hotels.

In addition to luxury office buildings, Lin said the trendy bars and the shopping and recreation complex provide ideal investment opportunities for Hong Kong and foreign entrepreneurs.

"The large number of leading corporations located in the area will result in Financial Street having one of the highest concentrations of high-net-worth consumers in the capital," Lin said.

"I am confident the world's leading ... consumer brands will be looking very closely at this district for their flagship outlets."

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