Xiamen sets sights on becoming financial hub
By Yuan Shenggao| China Daily | Updated: Oct 31, 2019
Fujian province commerce center is attracting big corporate players to set up operations
Xiamen, East China's Fujian province, signed agreements on 17 financial projects with substantial investment at a conference recently, as the city aims to build a national-level financial hub backed by a series of newly released preferential policies.
Among them, Yango Holdings, a large investment company, invested 3 billion yuan ($425 million) toward building its headquarters in Xiamen to expand its finance, environmental protection and education business.
Fortune Global 500 property operator Greenland Group will build its southeastern headquarters and financial headquarters in Xiamen with a 9 billion yuan investment.
GLP, a global provider of logistics facilities and technology-led solutions, initiated its multi-strategy fund with an estimated scale of 10 billion yuan in the city to invest in structured funding, personal equity and the transfer of second-hand shares.
A financial technology park, with an investment of 4 billion yuan, will be built in Siming district of Xiamen and operated by Tus-Financial Group, a subsidiary of science and technology investment company Tus-Holdings.
Agreements on the projects, whose gross investment reached 34 billion yuan, were signed at the finance industry promotion conference in late September. During the event, the city government of Xiamen released policies on taxation, subsidies and talent recruitment for companies and professionals involved in the finance industry.
The city announced its goal of building a financial hub that targets global markets, a pioneering area focusing on the opening-up of the finance industry, a demonstration zone for integrating industry and finance, and an innovative area for fintech and wealth management.
"The finance industry is key to the modern economy and a developed finance industry is core competitiveness of a city," said Hu Changsheng, Party secretary of Xiamen, at the event.
He added the finance industry helps to serve the real economy, especially high-tech industries, in the city's high-quality development. And its ideal business environment and long history of reformation have laid the foundation for building a strong finance industry.
The revenue of the financial service industry of Xiamen is expected to surpass 300 billion yuan by 2025. The balance of deposits and loans in local and foreign currencies in financial institutions each will exceed 2 trillion yuan. And the number of foreign and joint venture financial institutions will reach over 50 in total, according to the city's plan.
The financial innovation will focus on green finance, wealth management, gold finance, aviation and shipping finance, culture and film finance, and scientific and technological innovation in finance.
Hu added the city has released more policies to benefit the finance industry, such as for fintech, financial professionals and equity investment. It also established a related consultancy committee and will build a financial research think tank. A financing credit service platform for small and medium-sized companies was put into operation in September to help tighten the regulation and lower risk.
The city has also released preferential policies for financial professionals in housing, medical care and children's access to school.
For financial institutions that build their headquarters in Xiamen, the city will provide an award of up to 50 million yuan.
An official from the Xiamen financial regulatory bureau told Xiamen Daily that the new policies have attracted the attention of many financial companies nationwide, which have asked for more details via e-mail or through the hotline.
The official said the finance industry promotion conference is just the beginning and the bureau will continue to attract more investment, especially for headquarters projects, as it accelerates to become a financial cluster.
Xiamen is building a 23-square-kilometer cross-Straits finance center, covering fintech, private equity, gold and jewelry, as well as other related businesses and residential apartments. As of Oct 15, some 3.65-sq-m of area had been built upon. As of August, a total of 1,240 financial institutions and projects had settled there, including Taiwan-based Fubon Financial Holdings and local company Ruida Futures.
Fintech, according to Hu, is a new engine to drive the transformation and upgrading of finance, a new way to serve the real economy and an effective tool to avoid and prevent financial risk.
"We will make the most of our strength in software and information to innovate in financial products, business modes and procedures with modern technology," he said.
For financial institutions that set up fintech branches in Xiamen, the local government will award them with a maximum 5 million yuan. It will cultivate fintech startups and introduce professional agencies and organizations. It will also encourage financial institutions to use fintech to improve quality and efficiency, according to the local government.
Gulangyu Island is a popular tourist destination in the coastal city of Xiamen, East China's Fujian province. The city has a maritime landscape, diverse culture and a strong finance industry. Its ideal business environment, featuring lower operating costs and optimized services, has attracted companies and professionals from around the world.Provided To China Daily
The financial center in the Xiamen Area of the China (Fujian) Pilot Free Trade Zone is expected to play an important role in terms of attracting business.Provided To China Daily