The Sanya Central Business District (CBD), one of the 11 key constituents of the Hainan Free Trade Port, has reported progress in its headquarters economy, with construction starting on 19 projects.

The headquarters economy is a development trend in which regions with unique resources attract companies to set up their national or regional headquarters there, and the ensuing cluster of such headquarters leads to optimization of labor and resource coordination.

The 19 projects range from the Minmetals International Plaza, a 110-meter highrise building for office and commercial business; to the China Poly Group International Plaza Project, a similar innovative office and trade developmet center; and the CCCC Hainan headquarters project. It is estimated that 25 construction projects will be started within this year, with a total investment of approximately 41 billion yuan ($6.3 billion).

According to the CBD Administration, an agency created in 2019 to oversee investment promotion, construction, operation, and management of the areas, it aims to develop 84 fixed-asset investment projects this year, with a total investment of about 52 billion yuan ($7.98 billion).

Since the establishment of the CBD Administration, land transfer and fixed asset investments have been accelerated. Up to 143 hectares will be available for projects like commercial complexes and office buildings while over 62 hectares have already been allocated. Eighteen enterprises such as COFCO, CCCC and the China Poly Group have already obtained land in the area.

The administration said in the next step, it will accelerate project construction, investment promotion and system innovation. The area’s infrastructure will be boosted and planning and policy research undertaken to provide better services to the enterprises operating from the area.

The CBD focuses on building a modern industrial system whose key elements would be the headquarters economy, financial services, modern commerce and trade and the cruise and yachting industry, supported by professional services and the cultural leisure industry.

It consists of four units: the Phoenix Coast, which will serve cruise, yacht, culture and art services; the East Coast, which will be the core area of the headquarters eonomy; Yuechuan, which will serve the financial industry; and Hailuo, which will be the international talent community and garden headquarters.

An aerial view of Hainan’s Sanya Central Business District under construction on March 18.

Photo: Sha Xiaofeng