After the city of Qingdao in Shandong province was approved by the State Council as the country's only wealth management financial zone in February 2014, Licang, a district in the northwest of downtown Qingdao, is poised to gain new growth momentum by leveraging its edge in commerce and the financial sector.

Covering 98 square kilometers, Licang has been the cradle of Qingdao's modern industrialization and a leading commercial center since the early 1900s.

It was home to the 2014 Qingdao International Horticulture Expo, proof that the east of Licang is an eco-friendly leisure hub.

With a population of 540,000, it links the city with the rest of Shandong province through the Jiaozhou Bay Bridge, the longest of its kind in the world, and the Qingdao North Railway Station, which is expected to see annual passenger flow of 20 million by 2020.

Seven of the 16 subway lines planned for Qingdao will pass Licang, with the first already in operation.

Industrial parks in the district have recently been transforming from manufacturing-based to becoming incubators for innovative services and research and development centers.

In addition, high-rises are sprouting up in the district and are forecast to offer 1.81 million sq m of new office space for regional headquarters and financial companies by the end of 2016.

Facilities for entertainment, sports, hospitals and schools are being built or renovated to cater for the needs of the increasing population of financial workers and the district's original residents.

The financial industry is also growing rapidly in Licang.

In the first three quarters of 2015, the district's financial sector achieved profits of 1.96 billion yuan ($299 million), up 11.7 percent year-on-year.

During the first 11 months of 2015, tax revenue collected from the financial sector reached 213 million yuan, an increase of 16.95 percent from the same period of the previous year.

Total loans by local financial institutions reached 50.24 billion yuan during the period and deposits in Licang's banks amounted to 54.47 billion yuan, So far, there are 20 bank sub-branches, four securities business departments, 15 insurance company branches, two small loan companies and two private capital management companies operating in the district, creating a complete financial industrial chain.

An increasing number of companies based in Licang are going public.

So far, 21 companies have been listed on regional equity exchanges, with another eight listings in the pipeline.

In addition, two companies issued trading shares on China's New Third Board, or over-the-counter stock market, and six more have submitted applications to be floated on the market.

To encourage local companies to go public, the Licang government offers subsidies ranging from 200,000 yuan to 2 million yuan to aid their efforts to be listed on the New Third Board .

As polluting manufacturers move out of Licang, the district is looking to the service industry, especially the financial sector, to boost its economy.

At present, Licang is focusing on 617 major projects with total investment of 100 billion yuan expected to generate income to offset losses from moving manufacturing sectors to other areas in China.

Projects in the financial industry or innovative services are prioritized to create more value than traditional sectors in the limited land space.

Licang is also boosting residential property sales and its occupancy rate to drive consumer demand and further vitalize its already flourishing commerce industry by increasing the population.

City planners have made a development layout for Licang, dividing the district into the eastern, central and western sections. Each section will have different priorities.

The east area will focus on developing eco-friendly residential compounds and leisure resorts; the center as a traditional shopping center, which is expected to get a boost from the newly opened subway line; and the west will leverage the railway station and bridge to transform itself as a modern service industry hub with factories positioned by high-end office buildings.

In addition, the district will put more effort into attracting skilled professionals to ensure its rising financial industry has sufficient human resources.

In 2014, Licang set up a talent development fund with an annual budget worth of 5 million yuan to attract skilled professionals to invest or work in the district. It also provides a number of subsidies to reward and encourage scientific innovation and its commercial application.

The author is deputy director of Licang district, Qingdao.