(Yicai Global) April 26 -- The eastern Chinese city of Hangzhou, home to the nation’s largest e-commerce firm Alibaba Group Holding Ltd., spawned 28 newly-listed companies last year to become the country’s third-largest base for public companies, ahead of Beijing.
The city now plays host to 165 firms listed in China or overseas, behind only Shanghai and Shenzhen, according to a development plan released by local authorities. The proposal anticipates having 235 public companies in the city by 2020 and 100 more ready to float.
Hangzhou’s information industry was a key driver behind the surge, generating nearly CNY322 billion (USD51.2 billion) in added value last year, up 21.8 percent annually as it made up more than a quarter of local gross domestic product.
A large portion of Hangzhou’s listed firms are located in a 100-square-kilometer area in the city’s Binjiang district, where Alibaba is based. There are 30 listed firms in the area, including digital security firm Hangzhou Hikvision Digital Technology Co. and financial data service provider Hundsun Technologies Co.
In a bid to nurture even more listed companies, Hangzhou is offering CNY300,000 (USD47,696) to companies who reform their shareholding structure, CNY1.5 million (USD238,480) to those listing in China or overseas, and CNY2 million to listed firms that relocate to the city.
The value of the city’s listed firms totals CNY5 trillion (USD796 billion), placing it behind Beijing, Shanghai and Shenzhen in countrywide rankings.