Financial Industry Vital to Beijing's Economic Development

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Last updated at: (Beijing Time) Friday, March 22, 2002

Financial Industry Vital to Beijing's Economic Development

The financial industry contributes 15.5 percent of Beijing's gross domestic product (GDP) and has become an important force behind fast economic growth in China's capital, according to Mayor Liu Qi.

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The financial industry contributes 15.5 percent of Beijing's gross domestic product (GDP) and has become an important force behind fast economic growth in China's capital, according to Mayor Liu Qi.

While addressing a municipal meeting on financial work Thursday, Liu said Beijing witnessed steady and fast economic growth in the first year of the tenth Five-Year Plan period (2001-2005) thanks to the rapid expansion of the financial industry in the city.

He said banks in Beijing lent 34.5 billion yuan (about 4.16 billion U.S. dollars) to support development of high-tech industries in the city in 2001 alone, up 64.1 percent from 2000.

The financial sector had also written off more than 10 billion yuan in loans concerning 3,853 bankrupted or merged enterprises since 1997 and had helped 33 enterprises to carry out debt-for-equity swaps, which alleviated the burden on state-owned enterprises and ensured Beijing attained its goal for reforming state-owned enterprises.

In the past four years, 50 billion yuan (about six billion U.S.dollars) in bank loans were spent in financing construction of infrastructure projects. By 2001, the outstanding volume of housing loans for individuals topped 80 billion yuan (about 9.64 billion U.S. dollars), greatly promoting the development of real estate in Beijing.

In the meantime, the financial sector had kept working out new service items so that more and more ordinary residents of the city were engaged in one or more financial services such as online banks, or other new services regarding securities and insurance.

With the aid of 280 million yuan (about 33.74 million U.S. dollars) in loans, 31,000 students in Beijing were able to receive higher education last year.

Beijing Welcomes International Manufacturers

Beijing welcomes foreign technology-intensive enterprises to come manufacturing high-quality products, Mayor Liu Qi said Friday.

At a meeting with Eckhard Cordes, executive vice-president of the Daimler-Chrysler Corporation, Liu said China's accession to the World Trade Organization and Beijing's success in bidding for the 2008 Olympic Games have brought unprecedented opportunities to the Chinese capital.

"Beijing will accommodate both the high-technology industry and the manufacturing sector," he said.

Cordes said his corporation is keen on bringing its most advanced technology and products to Beijing, and he was confident of the corporation's prospects in Beijing.

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