A lens on the Greater Bay Area: Magnifying opportunities for businesses in the region

23 Oct 18

By KPMG China

The Greater Bay Area (GBA) represents a national development strategy to economically and socially integrate the nine cities in Guangdong’s Pearl River Delta, as well as Hong Kong and Macau, to create a world-class bay area.

The GBA is well-positioned to become the most diversified city cluster in the world – by leveraging its strengths in financial and professional services, high-tech manufacturing, technology and innovation, and tourism and leisure – and provides significant opportunities for companies in China. The increased connectivity and integration of the GBA will also enhance the movement of goods and services, capital, people and information within the region, and facilitate the implementation of the 13th Five-Year Plan and the Belt and Road Initiative.

This publication provides an overview of the key trends and developments in the GBA, and serves as a guide to how businesses can partner with KPMG to drive growth in the region.

The diverse range of industries and strengths across the GBA’s cities provides significant opportunities for companies that are looking to enter or build on their existing presence in China. KPMG is well-positioned to advise clients on their investments and business strategies in the GBA.

Innovation and technology to drive smart cities: The transformation of the GBA into an innovation and technology hub remains a key priority. This presents a number of opportunities for businesses, innovators and other key stakeholders to develop and test their ideas, deepen the talent pool, connect with strategic partners, and drive innovative and digitally-driven growth.

Building a solid foundation of infrastructure and real estate: Significant infrastructure development is a key pillar of the vision for the GBA. This is expected to generate high volumes of infrastructure and real estate development, creating plenty of investment opportunities for existing and new players in the region.

M&A activity set to soar: As the GBA continues to evolve, businesses operating in, or looking to enter, the market will need to review their medium and long-term strategies to assess how best to capitalise on the many opportunities.

Connected capital markets to drive growth: With a deep capital pool comprising both institutional and retail investors, the GBA remains an attractive and leading region for listing and trading securities, both for domestic and international businesses.

Financial institutions to capitalise on cross-border flows: The GBA stands as a major market for financial and high-value industries. The region’s size, as well as the different stages of development among its cities, present significant opportunities for the financial services sector.

Strategies to optimise business opportunities: The increasing connectivity within the GBA, as well as the region’s diverse range of industries across its cities, provide significant opportunities for companies that are looking to enter or build on their existing presence in China.

Navigating a new tax landscape: Enterprises participating in the GBA have to plan ahead and properly manage tax risks and utilise tax incentives to capitalise on opportunities presented by the greater movement of people and capital.

Mobilising and aligning talent: In order to achieve long-term success in the GBA, it will be important for companies to put the right people and organisational structures in place.

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