07 May 2018
When we think about China and its remarkable economic expansion we often think of signature achievements like the bullet-train network or, on a much grander scale, the evolving Belt and Road Initiative.
There’s one area of China’s economic expansion easily missed however, maybe because it is too obvious - the amazing expansion of the Greater Bay Area in south-east China.
"There’s one area of China’s economic expansion easily missed however, maybe because it is too obvious”
Integrated with Hong Kong and Macau, the Greater Bay Area also includes nine Guangdong cities. The area’s total population is about 69.6 million, representing 5 per cent of total population in China. Its gross domestic product is RMB10.2 trillion, 11.6 per cent of China’s total GDP.
To add perspective, the total GDP in the Greater Bay Area is higher than Australia and is about the same as Canada.
Total economic clout aside, the Greater Bay Area is also quite diverse and the 11 cities have their own core features. Guangzhou has the largest population, Shenzhen the highest employment figures, Hong Kong’s GDP is highly concentrated in tertiary industry while the GDP of both Foshan and Huizhou are mostly secondary industry. Macau has the highest GDP.
This complementarity of city profiles means it makes sense for them to coordinate and develop a city cluster instead of competing with each other.
By leveraging each city’s strengths and advantages the GBA would be able to grow as a strong economy with the largest population and land area, comparable to other major Bay Areas in the world like the San Francisco bay area, New York bay area and the Tokyo bay area.
Cities of the bay, globally
Because of the combined strength of such a cluster ANZ expects to see higher flows of people, information, capital, knowledge and technology between the cities.
Moreover we expect a government policy framework which will give more details on how to facilitate these cross-border movements.
Let’s consider what will emerge in more detail.
Opportunities for sectors in Greater Bay Area
Looking ahead - Milestones to be aware
The massive opportunity presented by the Greater Bay Area is already visible but the area was only formally put into the Government Work Report in 2017. More details will be announced in the near future.
We can already see the growth in development but the next major milestone – and, literally, bridge to faster growth – will be the completion of key infrastructure such as Zhuhai-Hong Kong-Macao Bridge and Express Rail Link.
That enhanced connectivity will induce even more cooperation among the 11 cities and we believe multiply rates of growth.
Ivy Au Yeung is Chief Executive Officer at ANZ Hong Kong
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
07 May 2018
25 Apr 2018