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BIZCHINA / Investment Alerts

CBD gives subsidies to attract investment
By Liu Weifeng (China Daily)
Updated: 2006-07-11 09:09

Chaoyang District government in Beijing awarded nearly 55 million yuan (US$6.87 million) to nine financial service firms yesterday, in an effort to attract more foreign investment into the city's central business district (CBD).

Aviva-Cofco Life Insurance Co Ltd, Generali China Life Insurance Co Ltd, Samsung Air China Life Ins. Co Ltd and six other foreign-funded financial service firms received the subsidies.

"The money was allocated for housing, healthcare, education and related social welfare for employees of these companies," announced Chen Gang, head of the district, during the award ceremony.

"My company has grown alongside the CBD," said Simpson Hsu, general manager of American International Assurance (AIA) Co, Ltd Beijing Branch, one of the companies celebrating the award.

AIA entered Beijing in 2002 with just three employees, but it now employs 4,000 people. It was awarded a subsidy of 2 million yuan (US$250,000).

The policy was initiated in February to boost the development of the financial sector in the CBD, and the city as a whole. It aims to create an environment attractive to international financial companies.

Tong Keke, president of the CBD administrative committee, said the award to the nine companies was just the beginning.

"At least 120 foreign financial companies are applying for the subsidy. By the end of this year, a total of 100 million yuan (US$12.5 million) will be given," he added.

The subsidy is only awarded to companies in sectors such as insurance and investment banking that fit the CBD's development plan, Tong told China Daily.

He said that sectors such as securities, stocks and trust funds were not eligible for the subsidy.


(For more biz stories, please visit Industry Updates)

 
 

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