The main reason behind setting up of Shenzhen as an SEZ in the 1970s was its proximity to Hong Kong, then a British colony. Shenzhen was supposed to attract investment from investors who were already investing in Hong Kong because Shenzhen is near to Hong Kong, sharing similarities in harbor structure and culture as well. Shenzhen went on to become the economic hub of China during the 1980s and it was also inferred the right to provincial legislature. Later, of course, Hong Kong and Shanghai took over this city.
The economy has been growing at a whopping 16% p.a. since 2001 here and the secondary and tertiary industries are adding to the steam here. Shenzhen is a major manufacturing center of China and its skyline, housing at least 15 buildings that are above the 200 meters mark, is a testimony to its sound economic presence on the horizon of China. The Shun Hing Square is probably the most famous and popular structure of this modern city, because of the fact that this is the 9th tallest building in the world. This building has an observation center at the top most level, a 5 floor shopping arcade and space for offices and apartments as well.
Shenzhen is home to many famous hi – tech giants from China, including Huawei, ZTE and tencent. Most of the ipods, iphones and other products for apple are made by Foxconn, which has its manufacturing unit here, at Shenzhen. You can really get your hands on some cool gadgets at an amazing price if you dig the local markets hard. IBM – Lenovo alliance has its manufacturing plant for the ThinkPad range of notebooks here. Some products from IBM’s server range are also manufactured here. IBM, by far, has the strongest presence among international brands here.
The Science and Technology Park at Nanshan area, and some outer city suburbs are home to rampant construction and development. Land and labor are cheap and in abundance here, which makes Shenzhen the new Shanghai. To invest in real estate here is one of the best options, because, according to projections, the real estate prices here are bound to move up, and therefore, this can be beneficial deal for a foreign investor. Setting up a manufacturing unit is also not too difficult here; the norms, taxes and rules for setting up industrial units are relaxed here, owing to Shenzhen being an SEZ.
Some of the most famous corporate houses based at Shenzhen are Wal-Mart China, Ping Insurance and the Shenzhen City Commercial Bank.
Although the Shenzhen stock exchange doesn’t offer a totally free trading experience like Hong Kong or Shanghai, yet, the rules that govern this market in context to trading of securities and mutual funds etc. are designed to maximize market flexibility and reduce the risks involved in a free market. The launch of IPO offers was suspended in the Shenzhen Stock Exchange and this tier of the market was merged with the Shanghai Stock Exchange. This was done in order to maximize management efficiency according to officials.
Investing in the booming retail sector at Shenzhen is also a good option, being reviewed by many international retail giants, including Wal-Mart. If you can afford the space for setting up a decent shopping mall or plaza here (and space, here, by international standards is quite economical), you are bound to churn good profits. The Mixc, Coco Park and Kingglory are homes to some of the best luxury brands here, including Gucci, Louis Vuitton and Armani. The Dongmen and SEG plaza are known for everyday items including essential commodities, ration supplies, food and other items. The SEG plaza is situated at Hua Quiang Bei, a commercial center of Shenzhen.
If, as in investor, you are hunting for a spot to get some space for your own retail store, this district is the place to be at. This Hua Quiang Bei district specializes in women’s accessory items, commercial electronics and some really slick retail outlets, offering high discounts and genuine offers on regular shopping items, mostly clothes and electronic goods.
This district is characterized by high rise building on both sides of the road, and tree lined footpaths, always crowded by potential buyers. This is a retail chain owner’s paradise. If you have the money to get space here, don’t wait a moment. Discothèques, massage parlors, restaurants and cafes are also in abundance here, and the people enjoy frequenting restaurants and pubs here, especially in the evening, after spending a hard day at shopping. Restaurants offering western and lesser known cuisines to the Chinese people are also a good option from investment point of view, because people here are quite willing to experiment with food, and if they like the taste of your ‘unique’ preparations, they’ll make you God here!
Getting here is not too difficult, but since you are entering the most populous city in the most populous province of the most populous country in the world, finding yourself a ticket can be quite painful, so we recommend that you plan and book in advance. Shenzhen has an international airport, which connect it to Hong Kong and many mainland districts of China, at to some international destinations as well. This airport is situated at almost 40 km from the city center and shuttle services are not a facility here, so you might have to get a taxi or board a bus, or take the train to reach the city center.
You can also enter the city from some high speed long distance trains to and from Guangzhou, Shanghai, Beijing and some other destinations. There are other ‘unknown’ and adventurous ways of reaching here, by a local bus, for example, or by hitch hiking. But these off-regular ways and methods can give a pain to your back and may be dangerous if you don’t get along well with the locals, so one should avoid these and use a rather conventional mode of transportation.
The city of Shenzhen is standing tall, with its arms wide opened, offering numerous possibilities and avenues to the generous investor, and its high time that this welcome is accepted by one and all. From retail to food and entertainment, the city is opening up, with its burgeoning population ready to spend and have fun. This is the place of enormous spending potential, and therefore should be of interest to almost any business man; after all it is not rocket science to see that here lies an ocean of economic resurgence.