The city Guangzhou is to pump 220 billion yuan (US$32.2 billion) into boosting its modern service industry.

The local authority has earmarked two areas of the Guangdong provincial capital to be developed into conceptual central business districts (CBDs), it stated in a new development guideline issued on Wednesday.

Zhujiang New Town, Yuancun and Pazhou will make up one district, while Tianhebei Road, Huanshidong Road and Dongfeng Road will be the other. Both will be formed by 2020.

The CBDs will ensure Guangzhou's future as a business hub by boosting development in finance, trade, information technology, exhibition, premium retail and law, the local government said.

With the CBDs as a platform, the southern metropolis will then establish four core services in outskirt districts, it said, with science research and production in Luogang, logistics in Nansha, air cargo transport in Huadu and Baiyun, and the creative industry in Liwan's downtown Xiguan area.

The guideline also set a new goal for the tertiary industry, to increase to 65 percent of the city's gross domestic product by 2015, and 70 percent by 2020.

Ding Li, a researcher with the Guangdong Provincial Academy of Social Sciences, said Guangzhou should strengthen cooperation with Hong Kong to further develop its service industry.

"Hong Kong has developed a sound service industrial system and could help improve Guangzhou's capability to host more international service industries," he said.

Meanwhile, the local government has also attached great importance to attracting more multinational and domestic firms to set up headquarters in the city.

A report by its development and reform commission said Guangzhou ranked third behind Beijing and Shanghai among China's 35 major cities in their capability and potential to spur "headquarters economy" growth.

As the country's third largest metropolis for development capacity, Guangzhou boasts a system covering various major industries and intends to develop its "headquarters economy" by drawing strength from its automobile, iron and steel, petrochemicals and other heavy and high-tech industries.

According to the official website of Guangzhou municipal government, there are 12 districts in Guangzhou, namely, Yuexiu, Haizhu, Liwan, Tianhe, Baiyun, Huangpu, Huadu, Panyu, Nansha, Luogang, Conghua and Zengcheng.

(China Daily May 29, 2009)