Shenzhen
When Shenzhen was designated a Special Economic Zone (SEZ) in 1980, it was the trigger for a boom that has lasted more than two decades. Formerly a largely agricultural economy, Shenzhen now has more than 10,000 industrial companies, has become a high-tech cluster, and is one of China’s most important centers for research and development.
Area: 1,255.2 square miles Government: Communist state Population: 4.05 million Language: Chinese (Cantonese), English GDP per capita: USD 4,800 Monetary unit: Yuan Exports: clothing, textiles, footwear, electrical appliances, watches, clocks & toys Imports: foodstuffs transport equipment, raw materials, semimanufactures, petroleum.
Fastest developing city in China
Economy
Guo Rongjun, Vice Mayor of Shenzhen
Today Shenzhen is the fastest developing city in the nation. Between 1980 and 2001, it posted a 29.5 percent average annual GDP increase, with a 45.4 percent rise in industrial output. Shenzhen is ranked second among Chinese cities in terms of its industrial output, and in 2001 it registered the fourth highest GDP levels in the country. For the last nine years, Shenzhen has had the highest import and export levels of any city in mainland China.
Guo Rongjun, Vice Mayor of Shenzhen, stresses that quality of life is also a priority in Shenzhen, which in 2000 was named China’s first International Garden City. “Shenzhen is undergoing continuous development,” he says, “and yet, an excellent environment goes hand-in-hand with our fast economic growth.”
Rongjun indicates that the three pillar industries for the future will be high-tech, finance and services, and modern logistics. However, he is seeking diversification into tourism and modern commerce as well.
Finance
Shenzhen is a magnet for foreign investment, drawing investors from 63 countries throughout regions worldwide. Between 1979 and 1997, 20,135 agreements and contracts were signed between local businesses and foreign enterprises. Investors have been attracted by many factors, including a well-regulated and liquid capital market.
Shenzhen’s sound financial system includes specialist banks, commercial banks, foreign banks and non-banking financial institutions. The city has 1,168 financial organizations, more than 900 service outlets, and 20,000 people working in financial services. 54 foreign banks or non-banking financial units have set up branches or representative offices in Shenzhen, including ABN Amro, Credit Lyonnais, Standard Chartered, Bank of Tokyo, Sanwa Bank, and Banque National de Paris.
The Shenzhen Stock Exchange is flourishing, with a listing of more than 200 companies. The city’s first stock issue took place in 1987 when Shenzhen Development Bank went public, and the Shenzhen Stock Exchange opened on July 3, 1991. Today the financial market system is multi-dimensional, multi-form and open-ended, incorporating a state-of-the-art computerized trading system. Trading ranges from stocks (both Type A and Type B) to bonds and mutual funds. Investors can buy on a T+1 basis, buying one day and selling the next. The market is open from 9.30 am to 11.30 am, and 1 pm to 3 pm each day.
