The local government in Yantai, a port city in Shandong province, is seeking investment to drive the development of its Eastern New Zone through a series of trade and investment events in Hong Kong from May 25 to 30.

More than 500 projects in the zone in high-tech and marine industries will be presented for potential investors, and contracts worth $6 billion are expected to be signed during the week.

"Hong Kong, rich in capital, talent and high technology, can play a big role in the development of the zone, which is expected to be a new economic powerhouse for the entire Shandong Peninsula," said Zhang Jiangting, Party secretary of Yantai.

Zhang said the 600-squarekilometer zone covers the most economically dynamic areas of the city, including its national Bonded Port Area, the High- Tech Industrial Zone, bases for marine economy and emerging industries, as well as the coastal areas of Laishan, Zhifu and Muping districts.

It has now established a competitive modern industrial system focused on advanced equipment manufacturing, biopharmaceuticals, aerospace science, marine engineering, software development and outsourcing, financial services, modern logistics, and coastal tourism.

Top priority is given to the marine industry because the local government has vowed to make the zone a leader in the development of Shandong Peninsula's Marine Economic Zone, the first of its kind to get the backing of the State Council.

With 150 km of coastline and 2,200 sq km of sea area, the zone features rich marine resources and great potential to develop a marine economy. Its 7.26-sq-km bonded port area is now boosting the city's marine economy through export-oriented processing, international logistics, shipping and a cluster of hightech industries.

Enterprises in the area can enjoy a number of preferential policies, such as exemption of duties for foreign goods and tax refunds for domestic good. Also, no value-added taxes or consumption taxes are required while trading within the area. With huge geographic and economic advantages, the zone has become a new investment hotspot. More than 480 deals for projects, each worth at least 100 million yuan ($16.3 million), have been signed with investors from more than 20 countries and regions. The total investment value has already surpassed 350 billion yuan. Its high-tech industrial zone alone has attracted a total of 60 key projects involving a combined investment of 63 billion yuan.

A central business district with a total investment of 8 billion yuan is now under construction. It will feature a creative industrial park, an R&D center and office buildings.

Shenzhen Huaqiang Holdings Ltd invested 26 billion yuan to develop Yangma Island in Muping district into an international coastal holiday resort that incorporates hotels, ecological farming, an amusement park and holiday villages.

With a total investment of 40 billion yuan, an environmentally friendly high-end real estate project along the east coast of the zone will be completed next year.

Projects well under way also include a 600 million yuan marine engineering research institute by the China International Marine Containers Group, the 6-billion-yuan Shandong International Biotechnology Park, and the 1.6-billion-yuan Marine Property Right Trading Center.

"When all the projects are put into operation in the next few years, the zone will become a new business and administrative core for the city," said Yang Li, deputy mayor of Yantai. Yang said that Hong Kong's numerous financial and professional services providers, will be able to find lots of opportunities in the development of the zone.

By Wang Qian

wangqian2@chinadaily.com.cn