Following State Council approval last July of a new development plan for the Liaoning coastal economic zone, the city of Dalian has now released its own blueprint for the next 20 years that plans further integrate the ultra-modern port with a range of regional and global business sectors. Its plan calls for accelerated efforts to become a regional financial center that will both serve and benefit from international shipping and logistics as well as modern industries.
Dalian plans to further develop financial services such as futures, financing, insurance, offshore financial services and intermediary services.
According to the city's development plan, the financial industry will have five dedicated areas including Zhongshan CBD and Xinghai Financial Town as core areas, both north and south Lushun Road as bases for support services, and a bonded area near Dayaowan Port as the offshore financial center.
Dalian aims to first develop a financial center for northeast China and that will evolve into a financial hub for Northeast Asia, with a number of modern financial institutions, a market system, a strong team of professionals familiar with modern financial services and a good business environment to support the industry.
To reach the ambitious goals, the local government will increase policy support to the financial industry, deepen financial reform, promote financial innovation and make the industry more open to both domestic and overseas businesses. Solid base
Dalian is also expected to benefit from strengthened regional cooperation and enhanced control of risks in the sector.
As the core of the city's modern service sector, Dalian's financial industry has developed a solid base for further development and exerted strong influence on surrounding areas since China's reform and opening up began 30 years ago. By the end of 2008, the combined assets of Dalian's financial industry reached 767.7 billion yuan with deposits of 553.5 billion yuan and a total loan balance of 406.3 billion yuan.
By the end of last year aggregate insurance premiums totaled 10.7 billion yuan, while futures turnover was 27.49 trillion yuan. All financial indicators put Dalian firmly at the top for the entire northeast region of China.
According to the first-ever China Financial Center Index ranking released by the Comprehensive Development Institute of the State Council, Dalian also ranks first in the Bohai Bay-rim region.
The city now has 186 financial intuitions with about 3,000 branches that employ more than 60,000 people in the sector. Their scope already reaches across China's northern and northeastern regions as well as into the east of Inner Mongolia autonomous region.
Dalian has the largest futures exchange in China, which is also the world's biggest trading market for plastics and the second-largest for agricultural products. The Dalian Commodity Exchange trades eight commodity futures that comprised 46.8 percent of the value of national futures transactions and 38.2 percent of the overall market in 2008. Its comprehensive strength is ranked the ninth in the world.
The city is home to 27 foreign-funded financial institutions including the Bank of Tokyo-Mitsubishi UFJ Ltd, Citibank and Standard Chartered.
It also has six financial support service centers including Citibank's data center and seven banks with offshore businesses. In addition, Dalian has the only foreign exchange trading center in northeast China.
Local financial institutions in the city have already established business agent relationships with some 4,000 banks in more than 150 countries and regions in the world.
In 2008, the non-performing asset ratio of Dalian's financial institutions decreased to 3.7 percent, making it the first northeastern city to enter the country's list for excellent asset quality. It has also been awarded the most internationalized city in financial environment in China for three consecutive years.
In addition to achievements in the financial sector, the coastal city's attractiveness to financial businesses also lies in its pleasant climate and urban environment, as well as abundant human resources.
Headquarters in Dalian
Currently, a number of financial institutions have established headquarters or regional headquarters in Dalian, including:
Bank of Dalian
Founded in 1998, the bank also has branches in Tianjin, Beijing, Shenyang and Chengdu. By the end of 2008, its total assets were 85.5 billion yuan, with a total deposit balance of 75.2 billion yuan and a total loan balance of 46.5 billion yuan. According to the British magazine Banker, the Bank of Dalian ranks 25th among domestic banks.
Huaxin Trust Investment Co Ltd
Established in 1987, it is the only trust company in Liaoning province. At the end of last year, the company was entrusted to manage total assets of 30.5 billion yuan.
Dalian Rural Credit Union
Founded in 2000, it has seven county-level credit cooperatives and one rural cooperative bank. The union's total assets were 33.9 billion yuan in 2008, with a total deposit balance of 29.7 billion yuan and a total loan balance of 19.3 billion yuan. The union is currently deepening reform in order to build a rural commercial bank.
Daton Securities
Founded in 2001 and restructured in 2006, it is the only comprehensive securities company in Liaoning. It has 26 business departments and three service departments in 20 cities across China. Its turnover in securities was 204.8 billion yuan in 2008.
ING Capital Life Insurance Co
Established in 2002, the company has branches in Beijing and the provinces of Liaoning, Shandong, Henan, and Anhui. Its insurance premiums totaled 1.82 billion yuan last year. Sompo Japan Insurance (China) Co Ltd.
Established in 2005, the company has branches in Shanghai and Guangdong province. Graded as an A-level company by Standard and Poor's rating agency, its insurance premiums totaled 223 million yuan last year.
Aeon Life Insurance Co Ltd
Founded in June 2009 with 1.11 billion yuan registered capital, the company is preparing to build branches in the provinces of Hubei, Hebei and Liaoning. It plans to set up affiliates in major cities across the country within five years.