Full coverage: G20 Hangzhou Summit

In the centre of Hangzhou, city planners are developing a Chinese version of Greenwich, Connecticut, that they hope will become a hub for hedge funds and other financial institutions in China.

Sitting at the foot of Yuhuang Hill in Hangzhou, the Yuhuang Shannan Fund Town offers more than just a beautiful landscape. Formally established last year, it aims to be an important platform for private capital in China.

Zhejiang Province and its neighboring regions are one of the most developed areas in China. The affluent capital has attracted many financial institutions moving to the town.

During its short time in existance, the town has seen explosive growth. 890 financial institutions are registered there, managing 520 billion RMB, or nearly 80 billion dollars worth of capital.

"The investment channel for private capital was very limited here. People mostly invested in the property market or even illegal private banks," said Miao Chengchao, Party Secretary, Shangcheng District Committee of CPC.

"On the other hand, many companies, especially startups are eager for money to develop. What we need is a professional medium to connect and balance the supply and demand for money."

As private wealth management is a relatively new discipline in China, attracting more western-educated and experienced professionals is critical for the Town's future.

In an effort to draw more here, international schools and medical centres have been built, but most important of all, there's a financial eco-system in place. It seems the strategy is paying dividends.

"We can bring more professional investment strategies and a concept of risk management to these affluent people to make China's capital market more mature," said Dr. Charlie Wang, Chairman, MD Grand Investments LTD..

"And we can also stimulate companies' development or transformation, through capital operations."

Zhejiang Province has been renowned for its manufacturing industry for decades.

However, it is now transitioning to a greener and more sustainable economy. Local authorities hope the Fund Town will be a powerful driver of this change.

Zhou Linjin is running a company which provides a car parking service for shopping malls and other public spaces... A fund company invested in it in July of last, but it's providing more than just money...

"Our market value has grown five times and reached 2.2 billion RMB in the five months since the capital injection.
We spend the money on employing more talent and developing new technologies," he said.

Parking has always been a major problem for Hangzhou, especially in the city centre...But using big data technology, you can book a space in advance now...

"We have abundant capital for investment, and the fund town has created a platform to find companies with great potential," said Sam Sheng, Managing Director.

"We hope that we can find more capital to upgrade these traditional industries, to both solve social problems and create economic benefit."

With the strength of China's real economy, the abundance of private capital available, and an incresingly sophisticated investment climate here, many believe that Hangzhou's Yuhuang Shannan Fund Town can go a long way to realising its ambitious targets.