Shenzhen set to be wealth management center

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The southern city of Shenzhen is home to the biggest number of securities companies in China. A third of fund management companies and many private equity funds are also located there. With the opening of the GEM board in the city, most are starting to expand business there. Experts say Shenzhen will become the wealth-management center in China as the finance sector opens up.

In the city center of Shenzhen, three construction sites are very busy. They will be the headquarters for China Merchants Securities, Guosen Securities and First Capital Securities.

The local land regulator says four parcels of land were transferred to the financial institutions last month.

Besides the more mature financial environment of Shenzhen, another draw is the ready-to-go GEM board.

Among the 100 applicants for the GEM board, securities companies in the city make up 30 percent of all sponsors.

Yan Weimin, Secretary General of Shenzhen Securities Association said "The securities companies in Shenzhen are more service-oriented and there are more sponsors among them. They have been working on the SMEs for years."

Experts say Shenzhen will become a financial center for the small and medium enterprises which represent the future of China's economy, while Shanghai works hard for the large state-owned enterprises. With the help of GEM board, those SMEs will grow bigger and stronger.

Yan Weimin said "I believe there will be many valuable shares on the GEM board in the long run. Because the emerging sectors and industries are what the Chinese economy needs."

Joining the securities companies are new fund management companies. The Ping An Fund, which belongs to Ping An Insurance Group has recently set up here.

There's also the headquarters of Minsheng Royal Fund Management Corporation, a joint venture of Minsheng Bank and the Royal Bank of Canada.

Zhang Jiansen, Director of China Development Institute said "Shenzhen has made up 50 percent of the wealth management market in China. With the GEM board, the advantage will be strengthened. "

Experts say Shenzhen may become the wealth-management center in China in the process of the opening-up of the finance sector.