By Zhan Lisheng (China Daily)
Updated: 2007-08-24 14:28

Guangzhou's development district administration is hoping its new 1.3 billion yuan ($172 million) zone will bring more company headquarters to the city.

The zone is geared toward the head offices of multinational corporations and large and medium-sized enterprises, and it will offer production and other services like research and development, finance, exhibitions and sales.

"We have selected a very scenic piece of land for the zone and we aim to establish more and more headquarters - corporate or regional - here," said Xue Xiaofeng, head of the district's administrative committee.

Several industrial giants, including UK-based Tesco, US-based Wrigley and Amway and local iron and steel firm Baosteel, have signed agreements to set up regional headquarters in the zone, said Xue, while several other multinationals and Chinese-listed companies are in negotiations to join the zone.

"Company headquarters 'zones' are heating up in many cities in China," he said. "Our district is in a favorable position to gain speed."

The district has more than 1,000 manufacturing companies including 98 funded by the world's top 500 corporations, according to official statistics.

The zone is Guangzhou's latest move to secure more company headquarters in the city, said Xiao Zhengyu, director of the Guangzhou Foreign Trade and Economic Cooperation Bureau.

"Guangzhou has hammered out favorable policies including financial support, subsidies and other preferential land lease arrangements and has simplified procedures for industrial giants to set up their Chinese or regional headquarters in any district in Guangzhou," he said.

Xiao said the city's investment climate, well developed industrial system, and its position as a key regional city in South China are all advantages for Guangzhou to lure more company headquarters.

Investors from about 80 countries and regions worldwide have set up 8,000 companies in the city, according to official statistics.

Guangzhou is on a par with Beijing and Shanghai in terms of the top first-tier cities for company headquarters, according to a 2006 report.