China’s underground financial market has grown at an exponential rate to meet demand from credit-hungry small & medium enterprises. Unlicensed loan companies have mushroomed across the country with a high concentration in the Yangtze and Pearl Delta areas, home to many small and medium-sized private Chinese companies

• Chongqing: A government mandate to develop the auto and electronic information industries will help support robust export growth in Chongqing
• Fujian: A new regulation governing judges’ behavior should help to reduce corruption in Fujian and aid in the development of its legal system
• Guangdong: A renewed focus on partnership with Hong Kong will benefit companies looking to expand operations in Guangdong
• Henan: In an effort to effectively compete with other provinces in attracting multinationals, Henan is giving special attention to FDI
• Hubei: Presence of multinational financial companies will increase Hubei’s appeal to MNCs due to increasing financing options
• Hunan: Hunan’s infrastructure expansion will drive the growth of the province’s import and export businesses
• Jiangsu: Government focus on modernizing production for energy and process efficiency will require MNCs to evaluate their current operations
• Jiangxi: Jiangxi’s economy will benefit from continued growth in the metals industry and the government’s new focus on the high-tech sector
• Liaoning: Continued strong growth in Liaoning’s software and services sector will create opportunities for companies in the technology industry
• Shandong: State-owned energy companies have major investment plans in Shandong due to abundant natural resources and local government support
• Sichuan: Industrial companies are increasingly using Sichuan as a major manufacturing base to produce for the West China market
• Tianjin: Tianjin’s shift towards higher value added industries will create opportunities for aerospace, biotechnology, and information technology companies
• Zhejiang: Power shortage, increase of input cost, and high cost of borrowing have created enormous pressure on SMEs in Zhejiang