Due to a recent rumor that the political centre of the new Jing-Jin-Ji regional agglomeration will be established in Baoding, a city in Hebei province, house and share prices in or related to Hebei province have soared recently. It is rumored that Baoding, situated 140 kilometres to the southwest of Beijing, will be the centre of a new Jing-Jin-Ji regional agglomeration, consisting of Beijing (Jing), Tianjin (Jin) and Henan province (Ji).
Property prices in Baoding rose by over 10% during the last week, while the price of some properties rose by as much as 40% from around 5,000 yuan/m² to almost 7,000 yuan/m². During the last 20 trading days, stock prices of the Hebei sector have risen 14%. Stock prices of companies such as Tangshan Port, Langfang Development and Risesun rose by more than 50%, and that of Hebei Baoshuo by a full 80%.
However, so far no official timetable for the integration of Beijing, Tianjin and Hebei has been released at the national level. An expert close to the National Development and Reform Commission explained that a “new subsidiary political center is the wrong interpretation, but it’s true that some functions of Beijing will be distributed to certain cities in Hebei.”