In June, Haier Group, a leading maker of home appliances headquartered in Qingdao, Shandong province, completed the purchase of GE Appliances for $5.58 billion. Sixty percent of the purchasing fund was backed by China Development Bank's Qingdao Branch.

The deal highlights the increasing strength of Qingdao's financial sector as the city moves full steam toward its goal of becoming a significant wealth management hub.

In February 2014, the city was approved by the State Council, China's cabinet, to build the Qingdao Wealth Management Financial Comprehensive Reform Pilot Zone.

A panoramic view of Qingdao in East China's Shandong province which is determined to become a leading wealth management city. Yan Zhendong / For China Daily

"Qingdao's financial sector has been growing rapidly since 2014, with the support of the central government and the city's already developed economy, sound infrastructure and appealing living environment, as well as a slew of rapidly-implemented reforms and measures," said Zhang Xinqi, mayor of Qingdao.

London-based research institution Z/Yen Group announced as it released the Global Financial Centres Index in April that Qingdao now ranks 79th among the world's leading financial centers.

As of the end of June, profits generated from its financial sector hit 29.4 billion yuan ($4.4 billion), increasing 8.5 percent year-on-year.

The financial sector contributed 6.5 percent of Qingdao's gross domestic product.

Total loans and deposits in local banks hit 1.26 trillion yuan, and 1.4 trillion yuan respectively, rising 13.1 percent and 11.49 percent respectively. Meanwhile, the ratio of nonperforming loans dropped 0.3 percent to 1.74 percent.

The insurance sector's accumulated premiums reached 19.1 billion yuan, a 45.2 percent increase compared with the same period last year.

"The central government has given its full backing to Qingdao's financial reforms, which has played a significant role in the achievements we have made," Zhang said.

More than 50 new financial policies have been introduced in Qingdao, including mortgaging patents to obtain loans which benefit small and medium-sized technology companies with financing, and pilot schemes for QFLP (qualified foreign limited partner) and QDLP (qualified domestic limited partner), enabling overseas investors to convert foreign currencies into yuan for private equity investments in China and raise funds to invest abroad.

In June 2015, Qingdao became the first of China's pilot cities allowing domestic companies to obtain loans in renminbi from banks in the Republic of Korea.

Guo Qiang, general manager of Sinopal, a local company which was among the first to adopt this new financing channel, said the measure has given the company new access to low-cost financing. The interest rate in China is about 4.5 percent, while in the ROK it ranges from 3.8 percent to 4 percent.

The range of new measures have led to the establishment in Qingdao of the first foreign-owned wealth management company and first asset-financing consumption company.

There are now 229 financial institutions operating in Qingdao, 25 of which have legal representatives. There are nearly 500 financial companies in various forms, including asset management companies.

Adjacent to the picturesque Laoshan Mountain, Jinjialing Financial Zone was chosen as the core area for the Qingdao Wealth Management Financial Comprehensive Reform Pilot Zone.

Over the past two years, it has grown rapidly and is on course to realize its goal of joining China's leading financial districts. It has attracted more than 170 funds, raising more than 100 billion yuan.

Wang Zhengrong, general manager of Shandong Financial Asset Management Qingdao, recently moved into his new office in the CMB Tower in Jinjialing.

"Many financial institutions are swarming to build operations in the area because of its natural environment, infrastructure, preferential policies and the atmosphere of dynamic growth in the financial sector," he said.