Guangdong Searches for Possibility of Opening Integrated Free Trade Zone
Guangdong province is finding ways on how to develop a new integrated free trade zone with the cooperation of Hong Kong and Macau. Sources that know the proposed project are saying that the province is already being encouraged to apply for the approval from the Central Government to start the construction of the free trade zone.
Guangdong is home to three economic pilot zones namely Hengqin island in Zhuhai special economic zone, Nansha district of the Guangzhou and Qianhai in Shenzhen. Experts are saying that the new integrated zone will bundle these three zones which will include Guangzhou’s airport economic development zone. There are also reports that Shanghai is preparing to start its own new free trade zone that will also integrate four zones in the city and is touted by the State media for its major policy experimentation with financial reform, logistics services and commodities trading.
These reports set off a several investments in listed companies that are expected to benefit from the development of the free trade zone especially the construction firms and port service providers.
Other free trade zones are being proposed in other Chinese cities but concerns were raised on the possibility of the proliferation of competing zones with risks of policy overlapping and deterring investors.