JAPANESE bank Takugin International has produced what is thought to be the first detailed comparison of investment and operating costs in Guangdong's two rival business centres, Shenzhen and Guangzhou.
But a bank official said that rising costs meant he would recommend neither city to clients, as industrialists could set up more cost-effectively outside the special economic zones.
The bank aims through the survey to help Japanese clients thinking of investing in southern China.
Assistant general manager Jackin Wong said: ''Many new investors who intend to invest in China may find it difficult to compare various factors of various cities when choosing where to establish a branch office or factory.
''Japanese interest in investing in China is now weaker than it was because of the financial squeeze back home, but even so there are still some clients who want to venture into this market.'' The information has been compiled by Takugin's representative office in Guangzhou and the Shenzhen branch office of its parent company, Hokkaido Takushoku Bank.
The survey shows that although the tax rate on profits is more favourable in Shenzhen, the sales tax for a particular product sold domestically may be higher there than in Guangzhou.
