Page 52 - 2016_SpecialReport_web
P. 52
6 Special Report on the State of Business in South China
Shipping • Guangzhou is a city of 13 million people and the na-
• Wholly foreign-owned international shipping manage- tion’s third-largest metropolitan economy;
ment enterprises is now allowed.
• The limit on the number of shares a foreign entity may • In 2014, regional GDP totaled RMB1.671 trillion,
now own in an international shipping enterprise is ranking third in the country, trailing Shanghai and
raised: a foreign entity may hold up to 51 percent of Beijing ;
shares in an international shipping agency.
• Among the highest in the country, average monthly
The Guangdong local government will take charge of the wages in Guangzhou grew to RMB 6830 in 2014.
approval procedures for foreign-invested enterprises (FIEs) en- Guangzhou’s monthly minimum wage rose by 22.3
gaging in international shipping management business. percent from RMB 1550 to RMB 1895 in 2014 –
the second highest in the province behind Shenzhen.
Further Opening-up of the Financial Services Sector Meanwhile, the city’s minimum hourly wage increased
• Enterprises and financial institutions in the FTZ may from RMB15 to RMB18.3.
now borrow RMB funds from overseas lenders.
• Parent company based in Hong Kong or Macau with Guangdong’s strength in foreign trade is evident in the fol-
a subsidiary in the FTZ may issue RMB-denominated lowing figures (from Guangdong Statistical Yearbook 2014):
bonds in China.
• Non-banking financial institutions located in the FTZ • Total exports rose to US$646.2 billion by 1.5 percent
may now conduct cross-border RMB settlements. year-on-year
• Eligible foreign financial institutions may now set up
foreign-owned banks within the FTZ; and Qualified • Although imports had to face a 5.5% decrease in 2014,
Foreign Financial Institutions may set up banking joint Guangdong realized an import value of US$ 430.5 bil-
ventures with Chinese enterprises, within the FTZ. lion.
• Eligible insurance companies and insurance intermedi-
ary institutions that are based in Hong Kong or Macau • Nevertheless, Guangdong province was still ranked top
can now set up branches in the FTZ. for both export and import values nation-wide.
• Commercial banks are encouraged to set up institutions
in the FTZ to conduct offshore foreign currency activi- In particular, trade between Guangdong and newly emerg-
ties. ing markets including Latin America, the Middle East and Af-
• Eligible investors from Hong Kong or Macau operating rica has increased greatly in recent years.
non-financial institutions in the FTZ may now provide
third party payment services. The Outline of Guangdong’s 12th Five Year Plan, current
• Eligible institutions registered Hong Kong or Macau may for 2011-2015, includes the following goals:
now set up financial leasing companies in the FTZ.
• Optimize the province’s industry structure such that
Tax Policies the service industry occupies 48 percent of all enter-
The Plan states that the tax incentives implemented in the prises by 2015. In addition, the Plan aims to increase the
ratio of the value added by modern service industries to
Shenzhen Qianhai Development Zone and Zhuhai Hengqin 60 percent of value added for the whole of the service in-
New Area shall not apply to the other parts of the Guangdong dustry. The key modern service industries to be promot-
FTZ. ed are: finance and insurance, modern logistics, informa-
tion services, science and technology services, business
Spotlight on Guangzhou’s Changing Identity exhibitions and the ‘headquarters economy’, among oth-
Traditionally considered a manufacturing base, Guangzhou ers. In addition, emerging service industries such as the
creative industry, services outsourcing, human resources
is increasingly being recognized for its growing amount of do- services and high-tech services will be actively promoted.
mestic consumption. From 2012, total retail sales in the city
increased by 28.8 percent and reached RMB769.785 billion in • Significantly improve the province’s innovative capac-
2014 . This enabled Guangzhou to take the top spot on Forbes ity, and become an important innovation center in the
China’s “Best Cities for Business” in 2014. Growth in retail sales Asia-Pacific region by 2015. In this regard, the Plan
is largely being fueled by Guangzhou’s large population and aims to introduce a wave of high-level technological in-
high wages, as well as its efficient infrastructure. novative talent from abroad.
52 • Transform the PRD into a domestic as well as interna-
tional consumer service center for a large number of
trend-setting products and with strengthened supervi-
Shipping • Guangzhou is a city of 13 million people and the na-
• Wholly foreign-owned international shipping manage- tion’s third-largest metropolitan economy;
ment enterprises is now allowed.
• The limit on the number of shares a foreign entity may • In 2014, regional GDP totaled RMB1.671 trillion,
now own in an international shipping enterprise is ranking third in the country, trailing Shanghai and
raised: a foreign entity may hold up to 51 percent of Beijing ;
shares in an international shipping agency.
• Among the highest in the country, average monthly
The Guangdong local government will take charge of the wages in Guangzhou grew to RMB 6830 in 2014.
approval procedures for foreign-invested enterprises (FIEs) en- Guangzhou’s monthly minimum wage rose by 22.3
gaging in international shipping management business. percent from RMB 1550 to RMB 1895 in 2014 –
the second highest in the province behind Shenzhen.
Further Opening-up of the Financial Services Sector Meanwhile, the city’s minimum hourly wage increased
• Enterprises and financial institutions in the FTZ may from RMB15 to RMB18.3.
now borrow RMB funds from overseas lenders.
• Parent company based in Hong Kong or Macau with Guangdong’s strength in foreign trade is evident in the fol-
a subsidiary in the FTZ may issue RMB-denominated lowing figures (from Guangdong Statistical Yearbook 2014):
bonds in China.
• Non-banking financial institutions located in the FTZ • Total exports rose to US$646.2 billion by 1.5 percent
may now conduct cross-border RMB settlements. year-on-year
• Eligible foreign financial institutions may now set up
foreign-owned banks within the FTZ; and Qualified • Although imports had to face a 5.5% decrease in 2014,
Foreign Financial Institutions may set up banking joint Guangdong realized an import value of US$ 430.5 bil-
ventures with Chinese enterprises, within the FTZ. lion.
• Eligible insurance companies and insurance intermedi-
ary institutions that are based in Hong Kong or Macau • Nevertheless, Guangdong province was still ranked top
can now set up branches in the FTZ. for both export and import values nation-wide.
• Commercial banks are encouraged to set up institutions
in the FTZ to conduct offshore foreign currency activi- In particular, trade between Guangdong and newly emerg-
ties. ing markets including Latin America, the Middle East and Af-
• Eligible investors from Hong Kong or Macau operating rica has increased greatly in recent years.
non-financial institutions in the FTZ may now provide
third party payment services. The Outline of Guangdong’s 12th Five Year Plan, current
• Eligible institutions registered Hong Kong or Macau may for 2011-2015, includes the following goals:
now set up financial leasing companies in the FTZ.
• Optimize the province’s industry structure such that
Tax Policies the service industry occupies 48 percent of all enter-
The Plan states that the tax incentives implemented in the prises by 2015. In addition, the Plan aims to increase the
ratio of the value added by modern service industries to
Shenzhen Qianhai Development Zone and Zhuhai Hengqin 60 percent of value added for the whole of the service in-
New Area shall not apply to the other parts of the Guangdong dustry. The key modern service industries to be promot-
FTZ. ed are: finance and insurance, modern logistics, informa-
tion services, science and technology services, business
Spotlight on Guangzhou’s Changing Identity exhibitions and the ‘headquarters economy’, among oth-
Traditionally considered a manufacturing base, Guangzhou ers. In addition, emerging service industries such as the
creative industry, services outsourcing, human resources
is increasingly being recognized for its growing amount of do- services and high-tech services will be actively promoted.
mestic consumption. From 2012, total retail sales in the city
increased by 28.8 percent and reached RMB769.785 billion in • Significantly improve the province’s innovative capac-
2014 . This enabled Guangzhou to take the top spot on Forbes ity, and become an important innovation center in the
China’s “Best Cities for Business” in 2014. Growth in retail sales Asia-Pacific region by 2015. In this regard, the Plan
is largely being fueled by Guangzhou’s large population and aims to introduce a wave of high-level technological in-
high wages, as well as its efficient infrastructure. novative talent from abroad.
52 • Transform the PRD into a domestic as well as interna-
tional consumer service center for a large number of
trend-setting products and with strengthened supervi-
