Source: www.asiaecon.org |
BEIJING TO BUILD NEW FINANCIAL DISTRICT
Chinese government is planning to expand Financial District in Beijing. The plan is the biggest since the Olympic Games. China Development Bank Corp, Industrial & commercial Bank of China Ltd., Agricultural Bank and China Construction Bank Co. will provide $ 8.78 billion of loans.
Li Chao, spokesman for the People’s Bank of China, said that while the central bank supports the efforts of other cities to boost their financial status, it is always easier said than done to build a so-called financial hub.
The central bank is based in Beijing, but it has made Shanghai its secondary headquarters, saying it can better safeguard the country’s financial stability with a big office close to the markets.
It is learned from the Organizing Committee of the China Beijing International High-tech Expo (CHITEC) that the scale of investment towards the construction of Lize Finance Business District will climb to 60 billion yuan, a new engine for the development of Beijing’s financial industry.
Once built, the district is expected to generate an economic aggregate of around 20 billion yuan each year.
Situated in Fengtai District, Lize Finance Business District will occupy 5.25 square kilometers of land, which constitutes the last region of scale to be developed within the Third Ring Road of Beijing.
Once built, Lize Finance Business District will be occupied by financial business headquarters in banking, insurance and securities; emerging financial institutions like venture capital investment funds and private equity funds; various financial key element markets including exchanges and future financial markets, various types of financial investment institutions; and headquarters of large domestic and overseas enterprises.
“Being close to the market, the customers and the regulators is very important,” said Jackson Cheung, chief executive for China of French bank Societe Generale SA. SocGen has decided to base its locally incorporated subsidiary in Beijing when it opens, probably in the fourth quarter of this year, although it will also keep operations in Shanghai.
Moreover, efforts towards the eastern expansion of the Central Business District (CBD), a landmark district of new Beijing, have already started. A gross investment of 15 billion yuan will be made according to plan this year.
The gross investment is expected to include government and social investment, with the former going to infrastructure construction and services for the real estate economy.
Currently, a new planning proposal is being studied and formulated. It is expected that the project will fuel nearly 100 billion yuan in social investment in all and create 150,000 new jobs, which amounts to a reconstruction of the CBD.
Source: www.asiaecon.org |