(Yicai Global) July 27 – The Guangdong-Hong Kong-Macao Greater Bay Area in southern China should set aside some space for the construction of innovation parks, Yu Liang, chairman of major Chinese real estate developer China Vanke Co. [SHE:000002; HKG:2202], said at a key Shenzhen municipal government meeting on July 26.

The development of innovation parks will reduce the start-up costs for small- and micro-enterprises and help them to attract more innovation projects, Yu suggested.

Shenzhen should integrate the development of such parks into its overall urban planning, he added, saying the local government could also allow changes to the use of industrial parks, storage areas and industrial land projects that are already approved but not yet under construction in order to use them for innovation park projects.

The parks could also host affordable rental housing for technology company staff, Yu said. The accommodation in the parks would offer preferential rental rates compared to market prices and would not be traded on the market.

Shenzhen's main innovation base, Nanshan district, is facing high property prices and severe traffic congestion. Start-up costs for small- and micro-enterprises costs are too high, making the city less attractive for innovative talent, Yu added, saying it is urgent that the city finds new space for development.

The average price for commercial housing in Nanshan district is about CNY90,000 (USD2,800) per square meter, and the average price for commercial and office buildings is CNY19,000 per square meter, official data shows.

Yu made the proposal at a meeting of the Standing Committee of the Shenzhen Municipal People's Political Consultative Conference on July 26. The Political Consultative Conference is an important body of multi-party cooperation and political consultation in China.

The conference is composed of government representatives, entrepreneurs and representatives from all fields.