The GBA represents a collaborative initiative to economically and socially integrate the nine cities in Guangdong’s Pearl River Delta, as well as Hong Kong and Macau, to create a unified and connected hub of commerce and innovation.
Says Tony Tsang, Private Equity Leader, Greater China Strategy and Transactions, “The Greater Bay Area is one of the top central government initiatives for the next stage of development. We expect the economic miracle in the Yangtze delta river in attracting foreign investments to repeat once again in the GBA. Global PE firms, many of which have regional headquarters in Hong Kong, are well positioned to capture the benefits, including opportunities in the technology, advanced manufacturing and healthcare sectors as well as from the further opening up of the financial service sectors.”
The coming years will see increased migration of talent into the GBA, which in turn will drive the development of entrepreneurship and more investments in smart city initiatives.
Looking further afield, investors from both the US and China will continue their push into Southeast Asia. Indonesia and Singapore, for example, are compelling because of the need for infrastructure development, fewer restrictions on foreign investment in the agriculture, banking and healthcare sectors, and a push for value-added manufacturing and services. Similarly, Vietnam is gaining PE traction in emerging sectors such as fintech, renewable energy, and e-commerce.