(Yicai Global) Feb. 27 -- Beijing is the only city in China with funds totaling more than CNY20 trillion (USD2.9 trillion), based on the balance of deposits held at financial institutions in the Chinese cities, which indicate a city’s capacity to absorb capital. The capital is followed by Shanghai and Shenzhen.

Funds in Shanghai totaled CNY19.23 trillion as of the end of last year, and Shenzhen had CNY12.34 trillion. These two cities and Beijing are the only ones in the country with more than CNY10 trillion of funds each.

As national financial centers, the three cities have national factor markets and trading systems, such as stock and securities exchanges, as well as headquarters of large financial institutions, including banks, brokerages, insurers, fund and trust companies.

Beijing ranks first nationwide for the number of Chinese mainland-listed firms and high-tech companies. The city is home to the headquarters of many central government-owned enterprises and regional headquarters of big multinationals. A large number of private companies have developed in Beijing, and many firms have moved their headquarters there. Hence the capital has pooled immense funds.

The city of Hangzhou, which ranks ninth in the country for gross domestic product, has a deposit balance of CNY6.96 trillion in financial institutions, approaching CNY7 trillion to rank in fifth place.

This is the result of economic development, especially in the city’s finance sector, Tang Hairui, deputy director the Hangzhou planning committee’s group of experts, told Yicai Global.

Internet finance has made great progress in Hangzhou in recent years, including fund and venture capital firms, which has promoted its industrial innovation, he noted.

Hangzhou also has a significant number of listed companies, which have raised a large amount of money, boosting the city’s economic development, Tang said.

Hangzhou had 26 new domestic and overseas listed firms last year, including 15 mainland-listed companies. The number of publicly traded businesses in the city was 288 as of the end of last year, 215 of them domestically listed. The city ranked fourth for the number of listed firms.

Hangzhou is the capital of eastern Zhejiang province, China’s fourth-largest province by GDP and has developed a private economy and has high per-capita income, according to Ding Changfa, an associate professor in Xiamen University’s economic’s department.

Editor: Peter Thomas