New zone in Suzhou focuses on fintech development
Next to the Suzhou North Railway Station — a future hub of next-generation railways — Yangcheng International Ecological New Zone is working in coordination with Hongqiao Transportation Hub to play a key role in regional integration.
The new zone, in the core of Suzhou’s Xiangcheng District, is focusing on fintech development. It’s building a system of “industry + finance + science and technology + talent,” a cluster of equity investment funds, a fintech innovation demonstration area and a model zone of modern financial service to create a new business model and a whole-industry-chain approach for financial technology, according to Yang Hongwei, director of the new zone’s administrative committee.
At present, the new zone is home to 99 funds, with a total scale of 94 billion yuan (US$13 billion), Yang explained during a promotional event in Shanghai on Wednesday.
In the next three years, the zone is expected to attract more than 80 fund management companies and over 400 fund managers. More than 220 funds with a total scale of 200 billion yuan will be based there, Yang said.
To become a fintech innovation demonstration area, the new zone will focus on the development of digital currency, blockchain and financial technology to build a research and development cluster of financial technology and an application and service demonstration zone of financial technology.
Taking advantage of the establishment of the Yangtze River Delta Digital Currency Research Institute and help from the Yangtze River Delta Financial Technology Co, the new zone has gathered 30 financial technology enterprises and is building the Yangtze River Delta Digital Financial Data Center to develop relevant technologies and business models to improve the efficiency of financial services to the real economy, and help the development of the inclusive financial industry.
It will accelerate the development of blockchain technology and industry innovation in Suzhou. On Tuesday, nine companies led by the Yangtze River Delta Financial Technology Co and Suzhou Tongji Blockchain Research Institute established Suzhou Blockchain Technology and Industry Association, which now has 50 institutional members.
With blockchain technology to empower multiple industries, 30 blockchain application scenarios have been created, including supply chain financing, electronic licensing, judicial certification, intellectual property protection and other scenarios.
“In the next stage, we will promote the implementation of 500 application scenarios in combination with the promotion of informatization construction in the new zone and set up a guidance fund for blockchain. The total scale will be 5 billion yuan in the new zone,” Yang said.
Additionally, the new zone will introduce licensed financial institutions, such as commercial banks, insurance companies, securities companies and financial service institutions, such as financial leasing, financial guarantee, commercial factoring and personal loans.
The new zone will also help more local businesses list on domestic and overseas markets and organize events focusing on equity financing and debt financing for local science and technology firms. A number of incentives, together with high-quality living and working conditions, make the new zone a land of entrepreneurship.