Guangzhou grows as intl financial center

Guangzhou has ranked 32nd worldwide and ninth Asia-wide in the 22nd Global Financial Centers Index (GFCI) published by commercial think-tank Z/Yen Group.

Compiled and published twice a year, the GFCI is a widely quoted ranking of the competitiveness of financial centers all over the world. The index takes into account business environment, financial sector development, infrastructure factors, human capital, and reputation and general factors. 

It also provides sub-rankings for financial services – banking, investment management, insurance, professional services, government and regulation. In the current ranking, Guangzhou excels in insurance ranking 12th worldwide.

It is only the second time that Guangzhou has been included in the GFCI, first appearing in March this year, and in that time its ranking has risen five places, a remarkable achievement among Asian cities. The Guangdong capital has also had its financial center profile adjusted from being an "international contender" in March, to an "international specialist" in the GFCI 22.

Wu Qin, an international affairs scholar at the Guangzhou Academy of Social Sciences, said these achievements demonstrate Guangzhou's steady transition into an international hub city.

Guangzhou steadily marches towards becoming a first-tier financial center. [Photo provided to chinadaily.com.cn]

"Guangzhou's strength in financial services was not well known to foreign professionals in the past, especially the Western ones, but changes are taking place right now," Wu said. "Guangzhou's rapid progress in hi-tech industries and its frequent international communications in recent years have gradually drawn the attention of famous global financial institutions."

Statistics show that the value-added for Guangzhou's finance industries increased by 133 percent between 2011 and 2016, the highest growth rate witnessed among all major cities in China.

Wu believes that Guangzhou should seize the strategic opportunity of the Belt and Road Initiative and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area to expand its financial services. Wu said that Guangzhou should take the initiative of China's transnational online payments and become a payment, liquidation, credit and saving platform for the Maritime Silk Road. Furthermore, Guangzhou should strongly promote internet finance and aim to be a global financial center in the future.