China recently approved the establishment of a third experimental financial reform zone in the city of Quanzhou, part of an effort by the government to diversify local financial institutions and increase capital accessibility for small businesses.
Dubbed “New Areas,” the reform proposals for a number of Chinese cities are intended to develop the financial system to support the development of local businesses and will encourage small institutions to issue collective bonuses, Global Times reports.
“The national level new areas are pilots in deepening reform and leading regional development,” Zhou Liqun, an economics professor at Nankai University, said, according to Global Times.
Programs have also been approved for the northwestern city of Lanzhou and southern city of Guangzhou.
China plans to channel capital from Taiwan, Hong Kong and Macao and to encourage the growth of financial institutions in the city. The proposal also aims to attract banks, particularly from Taiwan, to establish branches in Quanzhou.
Huang Shao-ping, mayor of Quanzhou, said that the city has a significant amount of private capital and plays an essential role in the reform process. More than seven million Chinese citizens living abroad call the city home, and their resources, combined with local resources, total more than $317 billion in private capital, according to Prensa Latina.
China also has new areas in Pudong, Binhai, Liangjiang and Zhoushan Islands.