Hong Kong & 3 other cities to lead GBA Development

The Key Takeaways from the GBA Blueprint 2019

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WHub

4 min readFeb 20, 2019

The Greater Bay Area (GBA) has been increasingly in the spotlight. The 11 cities in this area account for about 12 percent of China’s total GDP and The State Council of the People’s Republic of China has, on 18 February (Monday), revealed the Blueprint on developing this area into a “world-class city cluster” that rivals Silicon Valley and the Tokyo Bay Area.

With Hong Kong Special Administrative Region (SAR) as one of the focal players, other GBA cities the Blueprint plans on developing include Macau SAR, Guangzhou, Shenzhen, Zhuhai, Dongguan, Huizhou, Zhongshan, Foshan, Zhaoqing and Jiangmen.

The Blueprint mentions that developing the Greater Bay Area shows China’s initiative to develop and open its policies, while also promoting “One Country, Two Systems”. It outlines both short-term goals until 2022, as well as forward-planning until 2035. Carrie Lam, Chief Executive of Hong Kong SAR, welcomed the Blueprint and expressed her gratitude for the important position that has been placed on Hong Kong.

In this article, we will outline some of China’s ambitions for Hong Kong as well as its closest neighbors in the GBA, and key takeaways from the 11-chapter document.

The Four Core Cities

The Blueprint nominates Hong Kong SAR, Macau SAR, Guangzhou and Shenzhen to be the Four Core Cities to lead the region’s development with their own spheres of influence and expertise.

Hong Kong will consolidate its role as an international finance center, and will also be in charge of leading shipping, trade and aviation, and a hub for offshore yuan, management of global assets and risk management. Hong Kong is expected to lead new industries such as tech to increase global competitiveness.

Macau is sketched out to become an international tourist hub as well as a trading platform of China with Portuguese-speaking countries such as Brazil.

Guangzhou is expected to take up role as a provincial leader and to build global commerce and transportation.

Shenzhen is designed to become the playground for Chinese innovation, and will act as a special economic zone.

The government from these 4 cities should communicate and collaborate closely to lead the reform.

Financial Collaboration

The Blueprint stresses on the collaboration between the GBA cities and there have been suggestions in different aspects on how to achieve this.

In order to increase ease of financial synergy and financial inclusion, the Blueprint states that Yuan will become more prominent in the bay area, which will increase flexibility for cross-border transactions between the Mainland and Hong Kong.

Besides currency, several other economic measures such as increasing stock ties between Hong Kong and Shanghai, and Hong Kong and Shenzhen have been suggested, in addition to setting up a GBA international commercial bank in Guangdong.

Improving Infrastructure

There are plans to develop and improve transportation in order to enhance connectivity in the region. As has been previously established, Hong Kong is expected to take on leadership as an aviation hub, and a world-class airports cluster is to be built in the GBA.

Train-wise, the pan-Pearl River Delta will be outlined with expressways and high-speed railways.

By sea, Hong Kong will again lead the development and the competitiveness of the shipping industry and promote the Pearl River Delta ports.

According to the document, there will also be more connectivity by free WiFi in hub areas and significant traffic lines in the GBA.

Tying China and Hong Kong Closer

The most direct means would be facilitating the flow at immigration ports of both people and products, however, it also aims to make the Hong Kong and Chinese societies more integrated.

This includes promoting Hong Kong and Macanese locals to work in state enterprises, to provide similar rights and protection in education, medical care, elderly care, housing and transportation.

Encouraging Innovation

With Shenzhen quickly gaining a reputation as China’s Silicon Valley and Innovation Hub, better opportunities and conditions are arising for Hong Kong and Macanese entrepreneurs to start-up in the GBA.

In fact, Hong Kong and Macanese companies that deal with research and design will enjoy the same privileges as mainland firms.