A view of Laoshan district, Qingdao. [Photo/IC]

Laoshan district in Qingdao, Shandong province, is now home to various types of finance and upgrading structures thanks to its recent efforts to develop its financial industry.

Finance is one of the most active industries in Laoshan. Over the past month, Lianchu Securities moved its headquarters to the district, becoming the first local company capable of offering a broker license, and Sinvo Fund Co Ltd also moved to Laoshan from Shanghai, becoming the first public offering fund in Laoshan and the second in Qingdao and Shandong.

Jinjialing Financial District in Laoshan, the first financial pilot reform zone that offers wealth management services, is home to 1,068 finance-related institutions and enterprises that are involved with more than 20 sectors of the financial industry, forming an interactive and cooperative ecosystem.

In the first quarter of 2021, the added value of the financial industry in Jinjialing reached 5.09 billion yuan ($32.16milion), with a growth rate of 12.3 percent, accounting for 22.55 percent of Laoshan's GDP and making finance the first pillar industry driving regional economic growth.

Laoshan is also home to three wealth management subsidiaries of banks in Shandong. Early in 2019, after new policies for wealth management were released, China Everbright Bank established its wealth management company in Laoshan, becoming the first joint-stock commercial bank in China to establish such a subsidiary.

In 2020, BQD Wealth Management also settled in the district, followed by the wealth management subsidiary of HF Bank established this week. Wealth management subsidiaries have a promising future, as it is becoming important to help people receive an income from their property as a result of the developing economy and increasing wealth.

Local authorities have played a key role in the prosperous development of financial industries. Communication platforms such as conferences and forums have been arranged to help financial institutions and enterprises improve exchange and cooperation. 

The district has also implemented favorable policies to support enterprises. It has set up an enterprisecredit emergency working fund to provide cash-flow services to small- and micro-sized businesses with lower interest rates. As of now, 3.07 billion yuan has been used to help enterprises save 10 million yuan in financing costs. The district has also set aside 100 million yuan for a bank loan risk compensation fund for small- and micro-sized businesses and has helped financial institutions in the district distribute loans 3,770 times and financed 3.64 billion yuan.

The district was also a pilot zone for a series of creative policies on wealth management, thus attracting Qingdao Wealth Management Co Ltd, China's first municipal-level wealth management company that can purchase and dispose of non-performing assets of financial institutions in batches, as well as the Financial Markets Center of Qingdao Rural Commercial Bank, China's first specialized institution for financial markets to be set up by a rural commercial bank. 

In recent years, Laoshan has also committed to improving supporting facilities for financial industries. It boasts high-quality medical resources, such as United Family Healthcare, and educational resources like Qingdao International School. It has also arranged for talent departments to attract talented individuals.

Laoshan district will strive to increase the added value of its financial industry by 15 percent annually during the 14th Five-Year Plan (2021-25) period to reach 34 billion yuan by 2025, doubling the value in 2020, according to officials.