Will 2018 be the year Shenzhen and Guangzhou finally overtake Hong Kong?

The Guangdong cities are nipping at Hong Kong’s heels – thanks, in part, to greater investment in hi-tech industries

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Guangzhou’s economy past the 2 trillion yuan mark last year. Photo: Xinhua

Published: 8:00am, 12 Jan 2018Updated: 2:45pm, 12 Jan 2018

The southern Chinese cities of Guangzhou and Shenzhen could be the biggest economies in the “Greater Bay Area” by the end of the year, overtaking Hong Kong and forcing it into third place.

The provincial capital’s economy was expected to grow to 2.31 trillion yuan (US$354 billion) this year, Guangzhou mayor Wen Guohui said in his annual work report at the start of the city’s people’s congress on Thursday.

The science and technology park in Shenzhen. The city has prospered in part from its investment in hi-tech industries. Photo: Xinhua

Wen said Guangzhou’s GDP grew about 7 per cent to 2.15 trillion yuan in 2017, and its growth target this year was about 7.5 per cent. It was the first time the city recorded a GDP of over 2 trillion yuan.

US investment management firm Bernstein projected that Shenzhen’s GDP would rise to US$350 billion this year (or 2.32 trillion yuan), narrowly beating out a projected 2018 GDP for Hong Kong of US$345 billion (or 2.28 trillion yuan).

How China’s vision of a metropolis rivalling the New York, San Francisco and Tokyo bay areas will become a reality

Shenzhen will release its economic results for 2017 on Tuesday.