Lin-gang's financial sector spurs cutting-edge industries

The financial services industry of the Lin-gang Special Area – in East China's Shanghai city – is striving to boost the development of cutting-edge and scientific companies.

That's according to Li Ting, deputy director of the financial and trade department of the Lin-gang Special Area Administration, who was speaking at a summit held there on Dec 27.

Lin-gang has received and paid over 630 billion yuan ($90.34 billion) in foreign exchange in the past three years and it has set up 50 cross-border capital pools.

In addition, the number of stock market-listed companies in Lin-gang during the period has increased from four to 14. The number of banks in the area has also risen from four to 21, while the number of securities companies has grown from one to 14. More than 200 investment companies have settled in the area.

The total bank loans in Lin-gang has increased from 10 billion yuan to 300 billion yuan and deposits now exceed 200 billion yuan.

In the same period, the annual GDP of Lin-gang has increased by 21.3 percent, the gross industrial output has grown at an average annual rate of 40.2 percent and fixed asset investment has expanded at an average annual rate of 43 percent.

Li said the data showed that the biggest feature and foothold of Lin-gang's financial service industry was the vigorous development of its frontier industries and the scientific and creative enterprises in the area.

Under Lin-gang's plan for the 14th Five-Year Plan period (2021-25), by 2025 the total value of total industrial output of enterprises above a designated size – companies with annual revenue of 20 million yuan or more – is projected to reach 500 billion yuan, with an average annual growth rate of 25 percent.

Li noted that the purpose of energizing the real economy through finance was to form a dynamic and vibrant financial ecosystem in Lin-gang – with companies having relevant financial policies in position at all times.