In the next three years Guangzhou will put 150 million yuan into setting up financial development funds, which will be used to support financial institutions basing their headquarters or regional headquarters in Guangzhou. Financial institutions that are to purchase offices at the central commercial district of Zhujiangxincheng for own use will get a lump sum allowance of 1,000 yuan for each square meter they purchase. Foreign financial firms are encouraged to get stakes in city-owned financial institutions and the feasibility of setting up a futures exchange is being studied. The Guangzhou municipal government has recently issued the Opinion on Vigorously Developing Financial Industry in Guangzhou and put forward a series of specific measures.

The Party Committee and provincial government of Guangdong have decided to build Guangzhou into a "municipality with the power to fuel the whole province, radiate South China and influence the Southeast Asia". Regarding this an official with the Guangzhou municipal government said Guangzhou is the economic and trade center as well as the capital settlement and financial supervision center of the Pearl River Delta. As the financial risks left over by history dissolve Guangzhou should step up effort to develop finance as a key pillar industry and further consolidate Guangzhou's status as a regional financial center.

To boost the development of financial industry Guangzhou will set up special funds. The city finance will earmark 50 million yuan in three years starting from 2005 to subsidize financial institutions that are to purchase offices at the central commercial district of Zhujiangxincheng for own use in certain proportion to the land transfer fees handed over. Those that are to purchase offices for own use will get a lump sum allowance of 1,000 yuan for each square meter they purchase. Those that are to rent offices for own use will get 30 percent allowance of the guiding prices in the house-renting market within certain period (which is preliminarily set at three years).

Financial development contribution award will also be established to commend enterprises and individuals that have made remarkable contributions to the development of financial industry in Guangzhou. Guangzhou will push ahead the financial cooperation with Hong Kong, actively explore financial innovation, strive for the support of the central government and Guangdong province and study the feasibility of setting up a futures exchange in Guangdong.

By People's Daily Online