Zhengzhou

Investment, ideas fueling development

By Xiao Zhou (China Daily)
Updated: 2009-12-17 07:59

State-of-the art production facilities in action at the city's leading coach maker, the Zhengzhou Yutong Group Corp.

After about one-third of overseas capital invested in Henan province has flowed to the provincial capital Zhengzhou over the past three decades, the city continues to be a top overseas investment destination in the region.

By the end of 2008, international investors from more than 30 countries and regions had pledged $10.3 billion in investment for nearly 3,130 projects in the city. More than half of the funding is now in place.

In 2008 alone, overseas investment jumped to $1.4 billion, a record high in the city's history, equivalent to the total foreign capital it secured from 2000 to 2005.

While overseas investors have increased investment as well as mergers and acquisitions, a growing number of leading local brands have begun to go global.

Homegrown companies have been listed on overseas capital markets in Hong Kong, Singapore and the United States to raise funds, build their image and expand their influence abroad.

Commerce-friendly climate

Behind the investment boom lies a business-friendly environment, according to local government officials.

As a regional transportation hub, the city has one of the nation's busiest railway stations, an international airport with cargo lines to the Middle East, North Africa and Europe, and one of the nation's key telecommunication networks.

China's third-largest center for mail and telecommunication delivery - following Beijing and Shanghai - Zhengzhou provides convenient logistics services.

Its widespread transport network facilitates commodity exchanges, which in turn boosts commerce and other related service sectors.

To date, the city has 359 markets for various kinds of commodities.

Among them, the Zhengzhou Commodity Exchange is one of the top-three commodity exchange houses in China. It ranked 13th globally in trade volume in 2008, earning it the reputation as the world's most rapidly growing exchange.

The city is also famed as a trade center for garments, autos, agricultural products and construction materials.

Along with flourishing development of markets, financial institutions have also found a foothold in the dynamic city.

More than 20 financial institutions including HSBC and China Minsheng Banking Corp now have Zhengzhou branches.

Resource-rich city

The city has 34 kinds of proven mineral reserves including coal, fire clay and oilstone.

Its proven coal reserve of 5 billion tons ranks top in the province, while reserves of fire clay and bauxite both total 100 million tons, half and 30 percent of the province's respective totals.

Rich in natural gas and water resources, the city is also a key power supply base.

Backed by the abundant resources, the city seen as a crucial production center for nonferrous metals, food, coaches, coal, construction materials, fireproof materials and textiles.

The alumina output at China Aluminum's Henan operation tops Asia, while the city's Yutong coach maker is the national leader in sales of luxury coaches and urban buses. The city also ranks first in annual output of quick frozen food.

In addition to traditional sectors, a number of hi-tech industries including electronic information, new materials, opto-mechatronics and biomedicine are on the rise.

The city has more than 200 research institutions, 173,000 experts and technicians and 40 universities and colleges, all providing strong intellectual support to the development of hi-tech industries.

The city's patent applications totaled 5,845 in 2008, with technological contracts worth 3.36 billion yuan signed in the same year.

City authorities said projects funded by large companies will be a major goal in future investment due to their enormous pull for a local economy.

To date, 16 Fortune 500 firms have established facilities in the city since the first arrived in 1993.

(China Daily 12/17/2009 page6)