HSBC says it is allocating 2 billion yuan to fund innovation initiatives of tech startups and manufacturing companies in Guangdong province. The bank is also offering preferential interest rates and service fee waivers to these companies under its so-called Innovation Fund.

Montgomery Ho, HSBC’s chief executive for Guangdong, says: "After years of effort to move up the economic ladder, the Pearl River Delta  is turning into the 'Silicon Delta' for China, boasting a concentration of innovative enterprises in sectors like communications equipment, informationn technology and biotechnology.”

“With an advanced manufacturing ecosystem, the region is also an important production base for high-tech companies globally. The launch of this scheme will help us forge partnerships with the innovators who are driving the transformation of Guangdong’s economy," he adds.

By the end of 2017, the Guangdong government has pledged to build four smart manufacturing industry clusters with an output value of over 10 billion yuan as well as a number of enterprises with world-leading innovation capabilities, business scale and brand recognition.

While giving priority to the development of advanced manufacturing, emerging industries and the high-tech sector, the government is also encouraging traditional manufacturers and small-to-medium sized enterprises to enhance their competitiveness by upgrading their use of technology and ability to innovate.