| (I) Objectives of Development
During the Eleventh Five-Year Plan or longer period, we are constantly reinforcing and developing the achievements of modern service strong district construction to achieve the overall objectives of constructing a harmonious and benefiting Luohu District, sparing no efforts to build Luohu District into a business activity central zone integrating the modern service functions of finance, logistics, information and specialized services getting a footing in Shenzhen and offering service to the whole country, a consumer heaven backed up by the modern trading, urban travel, recreation and leisure and a cultural industrial base oriented in innovation industries.
The local GNP increases averagely and approximately 6.5%, and will come to RMB75,000-million by 2010. The GNP per capita comes to above USD9,600, the value added of service industry comes to RMB63,000-million, averagely increasing 6.5% a year. The gathering, radiating and promoting capacity of CBD has been evidently increased, and the value added of service industry amounts to 84% of local GNP. The land for construction of GNP per RMB10,000 by 2010 will come to 5.1 square meters, the power consumption of GNP per RMB10,000 by 2010 will come to 584 KWH, the water consumption of GNP per RMB10,000 by 2010 will come to 21 cubic meters, respectively dropping 25%-6% and 14% than those at the end of the Tenth Five-year Plan.
(II) Industrial Foundation
Tremendous economic output and outstanding benefit: The annual GNP of Luohu District has exceeds RMB53,000-million, growing at a rate of 10%; GDP produced in every square meter of land in Luohu District comes to approximately RMB700-million, about thrice that of the average level of Shenzhen. The levels of land used for construction for GDP for every RMB10,000 for 6.8 square meters, water consumption for 24.6 cubic meters and power consumption for 621 KWH are respectively 40.5% and 28.9% lower than the average level of the whole city.
Higher proportion of the third industry and constantly amplification of industrial function: Luohu is the financial center, busy business zone and network service base of Shenzhen with four pillar industries of finance, trading, jewelry and cultural innovation. Proportion of the third industry exceeds 90% of GDP, comes to and exceeds the world modern service industrial sophisticated urban level.
Ample sky land resources: There are over 500 high-rises in Luohu District above 18 storey, including the symbolic buildings and Class-A office buildings like Hing Xing Square, Kerry Centre, World Financial Building, Cross City and Luohu Business Center with a gross built-up area of 5,500,000 square meters.
Next to Hong Kong and with developed export-oriented economy: Luohu District is only separated from Hong Kong by a river, so Hong Kong factors play important roles in the economic, social and urban construction in Luohu District. There is tremendous potential for Luohu District and Hong Kong to cooperate in industries, for the shared culture and living styles. There are almost billions of people going out of and coming in the border between Luohu Port and Hong Kong every year, and Luohu Port is the biggest onshore travel port in the world.
(III) Development Mode——To push forward the development of self-innovation and high-end service industry
Eight strong points for Luohu District to push forward the growth of industrial innovation and high-end service industry:
1. Self-innovation and cyclic economic act as the powerful drive for the transformation of Luohu District with obvious tendency of industrial high-end and innovation development. The growth rate of financial industry has exceeded GDP growth rate for the first time in a decade and becomes the industry with fastest growth. By the end of October 2006, the assets and gross profits of financial institutions have respectively grown for 3% and 71%, amounting to 62.7% and 71% of the whole Shenzhen Municipality. 6 financial institutions have won the financial innovation prizes of Shenzhen City, amounting to 32% of enterprises in the whole Shenzhen Municipality. Business and trading industry have developed rapidly and the total amount of social consumption goods of Luohu District comes to RMB37,100-million a year, growing 14.5%. The golden triangle composed by South Renmin Road, Old Dongmen and South Bao’an Road is planned one of two municipal business zones of Shenzhen. Three chain stores among 30 top super centers in the country has settled in Luohu District. The business pattern of Luohu District is being innovated, the business types are enriched and a lot of new industries are on pilot in Luohu District. The sales proceeds of the hotels, guesthouses and travel agencies of Luohu District rank the first among those in all district of Shenzhen City, and the sales profits grow in doubles.
2. Economic growth has realized major restructure of economic growth, and consumption becomes the biggest drive for economic growth. In the case of stable social investment into fixed assets and stable exports, GDP of Luohu District keeps growing in two digits. It bears out that the means of economic growth has turned from focus on investment into focus on consumption, and comes into the denotative benign developing channel.
3. Constant optimization of industrial structure and improving value added in the high-end service industry. The third industrially structural ratio of whole Luohu District is 0.1:9.4:90.5, the third industry is well developed and formed the four pillar industries of finance, trading, jewelry and cultural innovation, as well as the productive service industry system focusing on the specialized service, R&D design and modern logistics.
4 Renovation of functionary zones has taken on a new look, the image of Luohu District as a modern and international town has been updated. The environmental renovation in South Renmin Road was completed before the end of 2006, and made contribution to the prosperity of Luohu District. The urban environmental renovation in Sungang Zone is almost completed, the municipal environment renovation in Qingshuihe Logistics Park is to be started. The success in the second urban development has removed the hidden troubles of Hollow Industry and afterwards, the construction of functionary Luohu District is heading forward and its value has been expanded.
5. Luohu District is connected to Hong Kong geographically, and shares the same culture with Hong Kong people as the most attractive zone for Hong Kong citizens and enterprises. Some Hong Kong citizens and enterprises are apt to consume and start their own careers in Luohu District. More than 80% foreign-funded enterprises and projects in Luohu District come from Hong Kong and Hong Kong factors have played a full and crucial role in Luohu District. In 2007, as the further implementation of measures stated in Phase IV of CEPA Agreement, it’s believed that Luohu District will act more strikingly to carry on the modern service functions of Hong Kong and the World.
6. Luohu harbors the advantages, unparalleled by other districts of Shenzhen, namely the splendid and healthy natural ecological environment. Although Luohu District is not big, yet it has one mountain and four lakes, and the forestation rate ranks the top in the whole city, the overall urban air quality is better than the average level of whole city, and the general air pollution indicators is 12.1% lower than the average level of the whole city. At the same time, Luohu District harbors matured urban supporting facilities, like shopping, food and drinking, recreation and living facilities. Further the sky land resources for more than 5,500,000 m2 composed by numerous office buildings in Luohu District has offered the quality living and working environment for modern companies and employees. Luohu District is the only urban district in Mainland China that has joined the West Pacific Region Alliance for Healthy Cities.
7. Luohu District harbors harmonious and healthy social environment. In 2006, the public security of Luohu District is stable and the total accepted criminal cases fall behind those in six districts of Shenzhen and there is no colony vicious incident for a whole year and more than 85% social contradictions are settled at the beginning. Construction in spiritual aspect of civilization, the mainstream humanity value is advocated and the philosophy scientific development is widely accepted, they have assured the economic growth powerfully.
8. The People’s Government of Luohu District is dedicated to constructing the hi-efficient service system. It is the first district in the whole city to carry out the service of accepting the foreign-funded enterprise approving affairs in two places, change the visited service to visiting service for enterprises, turn the individual services for enterprise into the general services, turn the services for partial enterprises into all enterprises inside its jurisdiction. It has promulgated and enforced the Several Opinions on Supporting the Development of Major Industries in Luohu District and the Provisional Measures for Specialized Fund Management for the Development of Major Industries in Luohu District, Shenzhen City, to afford the one-stop services for corporate development, including policy support and fund rewards.