On June 27, a research report named 'Development Pattern and Path of Guangzhou as A Center City of Service Industry', was issued by the Guangzhou Academy of Social Sciences. According to this report, the contribution of service sector to the total GDP has reached 60%. The report also suggests that Guangzhou develops into a center city of service industry which will provide significant support for the industrial upgrading in the Pearl River Delta (PRD); by focusing on producer services and by pursuing complementary development with Hong Kong.

This latest report underscores the reality that Guangzhou has entered the development stage of being a "service economy". No only does the service sector generate 60% of the city's GDP, but also its contribution rate to economic growth is 60% as well.. Since 2007, the service industry has utilized over 60% of foreign capital in Guangzhou for two consecutive years. So the report concludes that Guangzhou matches the reputation of "a center city of service industry" as the service sector becomes the main driving force of economic growth.

Guangzhou has relatively prosperous producer services which take up 63.7% of the sector. In providing capital goods and service for business organizations and administration institutes, it outshines many of the major cities in China, such as Shenzhen, Hangzhou and Chongqing, while in this aspect it falls slightly behind Beijing and Shanghai.

In terms of social expenditure, spending on service products takes up a high proportion and is a main growth point. Compared with the people in other cities in China, residents in Guangzhou tend to spend more on leisure activities, travel and dining out, which contributes to the high local spending on service. In addition, Guangzhou attracts a large number of domestic and foreign visitors each year who generate even more expenditures on service, and thus Guangzhou becomes one of the most important trend setters of consumption in China.

The report also suggests a development path for the service industry in Guangzhou: to strengthen comprehensive service, focus on producer service, develop flow economy as a supportive force, and pursue complementary development with Hong Kong and with international manufacturing industry in the PRD.

In other words, Guangzhou will exert its effort on increasing the capacity of providing comprehensive service and on developing high-end service industry. At the same time, service industry in Guangzhou will be integrated with the manufacturing industry in the PRD to differentiate the "hollowing-out" and "globalize" industry in Hong Kong.