Chengdu – China’s new futureJuly 8, 2013 / By
The Fortune Global Forum, organised by Fortune Magazine, is an annual meeting for Fortune Global 500 companies. The host city is honourably regarded as an essential part of global business. Chengdu was the host city of the 12th Fortune Global Forum and the fourth Chinese city to hold this summit. The three previous host cities in China – Hong Kong, Shanghai and Beijing – are Tier 1 cities, located in more developed coastal regions, whereas Chengdu is located in the traditionally less mature inland region of western China and is currently a Tier 1.5 city (China50 Fifty Real Estate Markets that Matter, Jones Lang LaSalle, 2012).
However, amid rising costs in coastal China and the shift inland of industrial production after the launch of China’s ‘Go West’ policy, Chengdu is the best city to demonstrate the theme of the 12th Fortune Global Forum – “China’s New Future” – because of the vitality of its economic development.
To this point about 240 of the Fortune Global 500 have set up in Chengdu, ranking the city at the top of the list in western China for the presence of Fortune Global 500 companies (Article “Mayor: ‘Dynamic Chengdu’ is ready to host top executives”, Information Office of Chengdu Municipal People’s Government, 27 May 2013). Nevertheless, Chengdu’s government understands that the figure lags behind that of Beijing, Shanghai and Hong Kong, which have traditionally acted as the stepping-stone to business in China. To increase that number, different levels of Chengdu’s government are elaborating on policies to spur investment. Before the opening of the forum, the government hosted various pre-forum marketing and promotion events in order to attract the attention of investors. We expect that the government will continue its pro-business and proactive approach aimed at attracting foreign investments.
Additional investment from Fortune Global 500 companies in Chengdu will eventually act as a catalyst for further economic growth, development, and diversification as well as support the rise of the middle-class; all of which will impact the property market. For instance, the rise of an educated middle-class will facilitate the phenomenon of “brand succession” in prime shopping malls, and more international Grade A office buildings will be built in order to fulfil the increasing requirements of foreign and domestic MNCs.
In short, we believe the Forum will accelerate Chengdu towards internationalisation and have written a white paper looking at the impact on the city’s economy and its property sector. Please look out for the report when it is published in a few weeks’ time.