A wealth management center at a bank in Xiamen, Fujian province. The financial industry is expected to be an economic engine of the city. Provided to China Daily

Name the cities that can be called China's financial hubs.

Hong Kong, Shanghai and Shenzhen may be the first few that come across your mind.

But one more Chinese city may soon be on that list. Its name may not that familiar, but it has something that others cannot offer.

Xiamen, a special economic zone in East China's Fujian province, is boosting efforts to become a regional financial hub dedicated to the growing business across the Taiwan Straits.

A cross-Straits financial services cluster is emerging in the city. It will have 37 buildings, which will form a block of offices. Nineteen of those buildings have already been completed, the Chinese-language newspaper Fujian Daily reported.

The 21-square-kilometer financial services center, with a total investment of 35 billion yuan ($5.5 billion), will be a springboard for financial companies from Taiwan to expand their business on the mainland.

It will also be a physical platform for cross-Straits financial cooperation, conducting experiments and reforms such as developing the long-awaited monetary settlement mechanism for cross-border trades.

"It's an important mission for the city to become a financial hub in the western region of the Taiwan Straits, deepening ties on the financial sector between the mainland and Taiwan," said Xiamen Party chief Yu Weiguo.

In 2010, the State Council officially approved the establishment of the financial services center in the city, a crucial part of the national strategy to develop the western region of the Taiwan Straits.

By the end of July, the center had attracted 72 investment projects, while another 252 are in negotiations.

Key projects still under construction include the Xiamen Haixi Jingu Square, the most upscale financial complex in Fujian province, which will cover an area of 430,000 square meters and focus on wealth management and other sectors of the financial market.

Zhong Xingguo, deputy chief of the Xiamen Party committee, said earlier this year that the city will be the forerunner to boost currency and financial cooperation with Taiwan.

The city is encouraging qualified Taiwan-funded banks, securities firms, insurance companies and other financial institutions to set up headquarters or establish operation hubs in the financial services center, he said.

Although nearly 30 mainland cities have ambitions of being either a national or regional leader in finance, Xiamen is the only city that set its sights on becoming a financial hub to serve the cross-Straits economic development by taking advantage of its geographic and cultural proximity to Taiwan.

Trade on the rise

The mainland is now Taiwan's biggest trading partner. Last year, the trade volume between the mainland and Taiwan reached $160 billion, up 10.1 percent year-on-year.

In 2009, the mainland and Taiwan signed a set of agreements to open up their financial services industries to each other and allow direct investment in Taiwan from the mainland, which accelerated Xiamen's ambitions to attract financial companies from across the Straits.

The city is now home to more than 250 banking, insurance and securities companies. Xiamen Bank was the first bank on the mainland to be jointly funded with Taiwan investment.

Taiwan-funded insurance companies, such as those with investments by Taiwan Life Insurance Co and Fubon Property Insurance Co, have already started operations in Xiamen and are making a profit.

Zeng Qinzhao, deputy director of the Association of Taiwan Investment Enterprises on the Mainland, said Xiamen could play a more positive role in exploring a relaxation of foreign exchange regulations on the mainland.

Zeng told the Strait Herald newspaper, a daily in Fuzhou, Fujian province, that Xiamen could allow companies to use Taiwan's currency for cross-border trade settlements, which could reduce costs and risks on the foreign exchange market.

Vice-Premier Li Keqiang said in April that the two sides should deepen cooperation in financial sectors when he met with a delegation from Taiwan during this year's Boao Forum for Asia.

Li also called for the establishment of a currency clearing mechanism between the mainland and Taiwan.

An important step forward in this regard was made on Aug 31, when the mainland and Taiwan signed a memorandum on currency clearing, paving the way for a cross-Straits currency clearing mechanism. The move is believed to be another important step for cross-Straits financial cooperation.

The State Council Taiwan Affairs Office said that the mainland will support more qualified Taiwan-funded banks that wish to engage in yuan-based business and increase the number of outlets as quickly as possible.

Contact the writers at humeidong@chinadaily.com.cn and tanzongyang@chinadaily.com.cn

Sun Li contributed to this story.

(HK Edition 09/08/2012 page10)