Finance sector looks to catch up

As Chongqing looks to make the most of its location, its municipal finance office says the city faces one huge disadvantage in competing with its rivals: its status as a newcomer to international finance.

Ruan Lu, director-general of the office, says Chongqing was once an industrial city with little investment in the banking industry or securities companies. All it had were some state-owned banks, and the city lacks the extensive experience in the field that other Chinese cities have.

"In recent years, the pace of local financial institutions going out has quickened. Some, such as Chongqing Bank and Chongqing Agricultural Commercial Bank, have been listed on the Hong Kong Stock Exchange. Southwest Securities has been helping Chongqing companies become listed overseas.

"But compared with developed regions, Chongqing lacks experience in the finanicial sector, and it takes a lot of time to build that kind of experience."

"The competitiveness of the financial sector in Chongqing needs to be improved," Ruan says. "As capital flows among different regions are facilitated, Chongqing's financial resources can be allocated in a better way."

However, for Chongqing, and the western region generally, nonfinancial industries continue to play an important role. One such company is Sichuan Kelun Pharmaceutical Co Ltd, which is headquartered is in Chengdu, and is on a drive to tap overseas markets.

Kelun, founded in 1996, has developed into a modern pharmaceutical group, with 87 branches in China and elsewhere. It had revenue of 35 billion yuan in 2014, with taxable profit of more than 2 billion yuan.

"We have invested about $50 million in Kazakhstan, where we will start manufacturing pharmaceutical products this year," says Feng Hao, 35, deputy general manager of Kelun.

"Although the economic situation in China is not as rosy as it used to be, Kelun is confident that, with the right planning as it goes global and with and support from local banks and government, we can maintain our growth momentum."

Zhai Shuang, treasurer of Sichuan Honghua Group, says: "As the Belt and Road Initiative progresses, the group is export business will continue to grow."

Honghua Group Ltd is an equipment manufacturer and drilling service provider that specializes in the research, design, manufacture and assembly of drilling rigs, offshore engineering, and oil and gas exploitation and production equipment. It is the biggest exporter of drilling rigs in China, and one of the largest land-drilling rig makers in the world.

Last year, the group says, its sales were worth 7.8 billion yuan, about 80 to 90 percent of that from exports.

Contact the writer through huhaiyan@chinadaily.com.cn