(Yicai Global) April 13 -- China’s eastern city of Hangzhou, home to the nation’s largest e-commerce firm Alibaba Group Holding Ltd., spawned 28 newly-listed companies last year to make it the base for more public companies than the capital and rank it third nationwide.
The city now plays host to 165 firms listed in China or overseas, behind only Shanghai and Shenzhen in number, according to a development plan released by local authorities. The proposal anticipates having 235 public companies in the city by 2020 and 100 more ready to float.
Hangzhou’s information industry, which generated nearly CNY322 billion (USD51.2 billion) in added value last year, up 21.8 percent annually, was a key driving force behind the surge, making up more than a quarter of local gross domestic product.
One 100-square-kilometer area in the city’s Binjiang district, home to Alibaba, hosts more than 30 listed firms with digital security company Hangzhou Hikvision Digital Technology Co. and financial data service provider Hundsun Technologies Co. among its ranks.
In a bid to nurture even more listed companies, Hangzhou is offering CNY300,000 (USD47,696) to companies who reform their shareholding structure, CNY1.5 million (USD238,480) to those listing in China or overseas, and CNY2 million to listed firms that relocate to the city.
The value of the city’s listed firms totals CNY5 trillion (USD796 billion), placing it behind Beijing, Shanghai and Shenzhen in countrywide rankings.
Editor: James Boynton