Aim to tap the enormous potential in China's growth engine
Poised to become an integrated economic and business hub, the GBA is a special region covering nine cities in Guangdong province (Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing) and two Special Administrative Regions (Hong Kong and Macau). The central government has pledged to deepen economic integration by enhancing inter-city infrastructure, talent mobility, logistic and investments within the region1.
Each city has a unique role2
A key driver of GBA is Research and Development (R&D), which in turn benefits sectors such as electric vehicle supply chain, biotechnology, technology hardware and equipment.
R&D spending across key economies3
The GBA’s per capita disposable income surpasses the national average. Its affluent population continues to drive consumption growth and upgrade. We are therefore positive on sectors such as property management, healthcare services, as well as premium food and beverage.
Disposable income per capita (urban): Guangdong vs National level4
More importantly, there is considerable policy support to enhance financial connectivity in the GBA, including Wealth Management Connect – the first cross-border investment scheme to further open up China’s financial market and promote economic integration in the region. Sectors such as banking and insurance, as well as property development may benefit from this scheme.
Government’s financial support measures5
The GBA has achieved the “one-hour living circle” vision with its well-developed, inter-city transportation networks and facilities. The enhanced connectivity and mobility are likely to benefit infrastructure sectors like airports and expressways, as well as utilities services.
Enhanced infrastructure improves community connection6
1. Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, 18 February 2019.
2. Manulife Investment Management, as of 31 December 2021. For illustration only.
3. 2019 data from OECD, Statistics Bureau of Guangdong Province and Shenzhen Statistics Bureau, 31 May 2021.
4. National Bureau of Statistics of China, CEIC, 26 January 2022.
5. The People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, 30 June 2021.
6. Manulife Investment Management, 31 December 2021. For illustrative purposes only.