Multinationals Keep Shifting Global Purchase Centers to Shenzhen

Home>>Business

Last updated at: (Beijing Time) Friday, November 30, 2001

Multinationals Keep Shifting Global Purchase Centers to Shenzhen

More and more multinationals are shifting their global purchase centers to south China's Shenzhen City, encouraged by huge business opportunities from China's entry into the World Trade Organization. IBM, Sony, Wal-Mart and Carrefour all show great interests in that highly developed city.

More MNC shifting their centers to Shenzhen

More and more multinationals are shifting their global purchase centers to south China's Shenzhen City, encouraged by huge business opportunities from China's entry into the World Trade Organization.

IBM

Sources from relevant departments said that IBM, which set its foot in this southern Chinese city in 1996, will purchase 3.2 billion U.S. dollars worth of commodities from China this year.

Sony

Japanese electronics and entertainment giant Sony Corp. set up a purchasing center at Yantian Bonded Zone of Shenzhen in July. The company's volume of procurement from south China will range from 500 million to 800 million U.S. dollars this year, and the volume will amount to 5 billion U.S. dollars by the year of 2003.

Wal-Mart

The global purchasing headquarters of Wal-Mart, the world's largest retailer, registered for establishing a company in Shenzhen this month. The new company will begin operation early next month. The U.S.-based retailing giant has so far opened six stores in Shenzhen.

It purchased more than 10 billion U.S. dollars worth of commodities from China last year, of which, 95 percent were from Shenzhen.

Carrefour

Other multinationals such as Carrefour, the world's second-largest supermarket chain, and the French telecommunications equipment maker Alcatel, are busy with preparations for bringing their Shenzhen-based global purchasing centers into operation. Carrefour will purchase 1.5 billion U.S. dollars worth of commodities from China this year.

Shenzhen, a highly developed city

Shenzhen, which faces Hong Kong across a local river, is one of China's five special economic zones. It has grown from previously a small town with only 20,000 people to a modern city where export-oriented economy is highly developed.

The window of Shenzhen

Finance & Investment

A sound financial system is in shape comprising central bank, specialized banks, commercial banks, foreign-owned banks, and non banking financial institutions. Financial Organizations number 1168 with over 900 service outlets. There is a financial staff of over 20,000. By the end of 1997 RMB deposit balance in the entire banking system totaled 182.70 billion Yuan.

54 foreign banks or non-banking financial units including the Bank of Tokyo, Societe Generale of France, Shanghai Hongkong Bank and Banque National de Paris have set up their branches and representatives in Shenzhen. Securities business has witnessed rapid growth. Over 200 companies are listed in the Shenzhen Stock Exchange including 200 A securities and 43 B securities issuing a total capital stock of RMB 44 billion yuan. The turnover of securities totaled RMB 1394.9 billion Yuan, including RMB 1221.7 billion Yuan of shares. A multidimensional, multiform. open-ended financial market system has taken shape along with the formation of the short-term capital market, the foreign exchange regulation center and the precious metal market.

More information about Shenzhen

Shanghai Keen on Fostering Multinationals

Beijing to Become Multinationals' Bridge to China Market

280 of Top 500 Multinationals Invest in Guangdong