Category Archives: Industries

Amundi sees potential in Wealth Connect

French asset-management giant Amundi says it expects to launch products soon into the Greater Bay Area as part of the imminent launch of the Wealth Connect Scheme.

According to an interview in Bloomberg, the company has two to three moderately risked products lined up, focusing on fixed income or a mixture of equities and bonds. “We’re just waiting to push the button” once they get a nod from regulators, said Kerry Ching, CEO of Amundi in Hong Kong.

Amundi plans to more than double its assets under management in China within the next few years, the company said, from around US$120bn now to around US$250bn.

More on Bloomberg

Shenzhen to open 146 new schools this year

Shenzhen has been prioritizing the upgrade of its education system for some time, and major construction projects are coming online this year and for the rest of the current five-year plan, which will see hundreds of thousands of new public school places created. This year alone, 146 schools – 74 primary and secondary and 72 kindergartens – will open, offering 130,000 places. At the same time, 90 primary and secondary schools and 60 kindergartens are starting construction. 

This year’s new schools represent investment of around 23.3 billion yuan.

In addition, university projects are also under way that should be completed in the coming few years. These include some well-known national and international names. In addition to the Shenzhen University of Technology Phase I, SUSTech Phase II, Shenzhen University Xili Campus Phase II, and Sun Yat-sen University Shenzhen, which will be completed by the end of this year, others coming up include: The main building of Tsinghua University Shenzhen International Graduate School (Phase I),in May 2022; The Chinese University of Hong Kong (Shenzhen) Phase II, Harbin Institute of Technology Shenzhen International Design School and the Chinese Academy of Sciences Deep Science and Technology Program in 2023; Innovative and Creative Design College, Conservatory of Music, The Georgia Institute of Technology, Tianjin University, Shenzhen University, Shenzhen University Medical School Phase II, and Southern University of Science and Technology School of Medicine in 2024; and the Chinese University of Hong Kong (Shenzhen) School of Medicine in 2025.

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‘Car city’ set to open in Shenzhen

Ever wondered why you can’t shop for a car the same way you can for a sofa, i.e., by wandering around the motoring equivalent of an IKEA? Now you can, with the imminent opening in Shenzhen of the Guangming International Automobile City.

At the end of the month, the first phase of the new project is set to open in Shenzhen’s Guangming district. It is being billed as an “industry + commerce + cultural tourism” park, where car showrooms exist amid a wide range of other attractions and where a family can spend a few hours, if not a day.

The entire project includes 274,000 sqm of floorspace, supported by 684,000 sqm of green space for outdoor and leisure activities. The first phase will be only one-fifth of what will eventually be built, but it will consist of high-end “4S stores” – for sales, service, spares and surveys – and apartments. The second phase will include “car e-commerce,” facilities, cultural and leisure attractions, themed lifestyle neighborhoods, business hotels, corporate offices, and park services. These should all be completed over the course of next year.

Once built out, the new park is expected to account for 20% of all car-related sales in Shenzhen, generating 20 billion yuan in annual revenues for the companies based there.

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Guangdong visitors all clear in Macau

All travelers from Guangdong may now visit Macau without needing to go into quarantine, according to Macau’s government. The change took effect at 6pm on July 7, as the Dashi subdistrict in Panyu, Guangzhou, was the last district to be lifted from the quarantine list. That leaves Ruili, in Yunnan, the sole place in mainland China on Macau’s quarantine list.

Guangdong has been the largest source of Macau’s inbound tourists in recent months, according to official data. The gambling mecca has been hammered by the recent rebound of cases in Guangdong, but is expected to resume growth in the second half of this year now that the outbreak has been brought under control.

More on GGRAsia

Melco invests in non-gaming resort in Zhongshan

Melco International, the Hong Kong-listed parent company of Macau casino operator Melco Resorts, has decided to step across the border by investing in a non-gaming project in Zhongshan. In a joint venture with Hong Kong-listed property giant Agile Group, Melco will build and operate a theme park within the development, which is a “premium residential, entertainment and hospitality mixed-use complex,” carrying an initial investment of 4 billion yuan in the land.

The land plot in Zhongshan covers an area of approximately 504,000 square metres (5.43 million sq feet), and includes various plots with land-use authorisations ranging from 40 years to 70 years, depending on specific utilisation, according to a separate filing to the Hong Kong bourse.

Although fellow gaming group Galaxy Entertainment has a plot of land in neighboring Hengqin, a special zone known as a New Area, it has not yet started work on the project. Melco would be the first of Macau’s gaming license-holders to open an operate a resort on the mainland once the project is completed in 2025.

More on GGRAsia

Shenzhen university sets up chip college with SMIC

Shenzhen University of Technology has established an Integrated Circuit Academy in collaboration with the country’s leading chip foundry. Ruan Shuangchen, the university’a president, signed the agreement with Xu Feng, the Shenzhen head of operations for Semiconductor Manufacturing International Co., this week.

Speaking to local media at the signing ceremony, Ruan said a huge shortage of talent in semiconductor design and manufacturing is one of the country’s biggest challenges, and the establishment of the college would help to address this. He said the province’s tertiary education institutions were not well oriented toward the development of chip technology, and his university had an important role to play in boosting collaboration between research institutes and the commercial sector. Besides SMIC, the university would also collaborate with BYD and Huawei, two of the country’s best-known tech conglomerates.

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Wealth Connect might be building unrealistic expectations

Hong Kong’s financial institutions are eyeing new revenue opportunities worth as much as HK$3 billion a year from the Greater Bay Area’s Wealth Connect Scheme, according to Bloomberg. However, a survey shows that mainland investors might have unrealistic expectations for the returns they can get from the cross-border investing scheme.

“This is a breakthrough for the retail investor to open up new ways of investing on the other side, across the boundary,” Bloomberg quoted Daniel Chan, head of the Greater Bay Area at HSBC, which is hiring 300 to 400 people in Hong Kong for its regional expansion, as saying. “We are in full swing preparation.”

“It’s a game of numbers in some ways,” said Hong Kong-based Samir Subberwal, head of consumer, private and business banking for Asia at Standard Chartered, which is hiring or promoting 3,000 managers for its Asia wealth business over five years. “The total revenue pool on account of this could be quite large.”

Their potential new customers might not be that easy to please, however. Mainland Chinese investors on average are looking at 13 per cent annual returns from their investments under the scheme, a level deemed as too high given the restrictions, according to a survey by the Hong Kong Investment Funds Association.

To achieve such high returns, mainland investors will have to invest in products with medium-to-high risk levels that have a higher exposure to equities, HKIFA chairman Nelson Chow was quoted as saying by SCMP. However, the scheme allows mainland investors to only invest in about 300 Hong Kong-domiciled funds with low to medium risks with exposure to bonds and large cap stocks.

“We hope the authorities will relax the Wealth Management Connect scheme in the future to allow investors to invest in products with different risks levels to fit their risk appetite,” Chow said. It’s “very difficult” to achieve 13 per cent without assuming more risks, he added.

More on Bloomberg and SCMP

Medical aesthetics industry swells

Plastic surgery and other medical aesthetics services and products are becoming a hot investment sector in China, and Shenzhen, being the country’s richest city, is seen as being at the center of its development, according to local media. This is not just because online search topics such as “elves ears” are surging in popularity. It is reflected in sales of companies engaged in the sector, which is increasingly attracting retail heavyweights. From 198 billion yuan last year, the industry is forecast to swell to more than 300 billion by 2023.

Listed companies have seen their stock prices surge recently. In the 43 trading days from March 26 to May 31, the “Flush Medical Beauty Concept Index” tracked by a local information provider jumped by more than 60%. They include 12 companies with a rolling P/E ratio of more than 100.

Online giants Pinduoduo, Alibaba, Meituan, and JD.com are all invested in the space. But analysts believe there is still room for SMEs to grow, as long as they can specialise and differentiate their products and services.

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GBA to connect soon with Jiangxi Province

Ganzhou City, the capital of neighboring Jiangxi Province, will soon be connected by high-speed rail to the Greater bay Area, reducing travel time from seven to two hours. Once the “Ganshen” railway running from Ganzhou to Guangzhou opens at the end of this year, it is expected to provide a significant boost for Jiangxi, one of China’s poorer provinces, in both exports and imports of goods and services. Chief of these will be agricultural products, which will be boosted by the completion at the end of this year of an integrated logistics center in Ganzhou, as well as tourism. Jiangxi is one of the country’s most naturally scenic areas, with forests, rivers and unspoilt countryside.

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Marine economy adds oil

Guangdong’s marine industries generated output of 1.7 trillion yuan in 2020, highest among the country’s 33 provinces for the 26th consecutive year. The cluster of industries accounted for 15.6% of regional GDP and 21.6% of the country’s total marine-industry output. This is largely concentrated in and around its major ports: Guangzhou (Nansha), Shenzhen Shekou and Yantian), Zhuhai, Dongguan and Zhanjiang. It includes six major marine industries: marine electronic information, offshore wind power, marine biology, marine engineering equipment, natural gas hydrates, and marine public services.

Shenzhen is in the vanguard of this effort, and is ploughing tens of billions of yuan into development of new marine-technology parks, with particular focus on the development of the marine biomedical industry. Parks built or underway include: Sino-European Blue Industrial Park, Ocean New City, Shenzhen International Biological Valley, National Southern Ocean Science City, and Dapeng Ocean Biological Industry Park.

Pingshan has more than 600 biopharmaceutical companies, while Dapeng New District Marine Biological Industrial Park has 61 projects, and the number of intellectual property projects obtained exceeds 120 (items). In 2020, the province’s marine biomedical industry generated output of 5.1 billion yuan, a year-on-year increase of 23.6%.

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