The coastal city of Qingdao in East China's Shandong province, is aiming to become a global wealth management center after getting central government approval earlier this month to establish a financial pilot zone.

Qingdao will explore new models of development in its quest to become a world center for wealth management, [Hong Kong Company Formation & Registration]said Liu Mingjun, vice-mayor of Qingdao, at a news conference on Monday.

The city will speed up the establishment of a regional equity exchange and precious metals exchange while fostering a market for high-end consumer products and art collections, he said.

It also will explore cross-border wealth management services and launch pilot projects to reform the foreign exchange management system, said Liu.

Qingdao is currently the site of more than 10 wealth management centers. Nine banks in the city already have set up their own private banking departments.

"In 2013, the added value of the financial sector accounted for 5.85 percent of the city's gross domestic product," said Bai Guangzhao, director of the financial office of Qingdao. "Our future target is more than 10 percent."

Shandong province has better economic and financial development than some other eastern coastal provinces in China.

The provincial economic growth relies mainly on the joint development of the marine economy and regional finance, [company registration in Hong Kong, Hong Kong company incorporation]said Li Jianjun, deputy dean of the School of Finance at the Central University of Finance and Economics in Beijing.

"Qingdao has geographical advantages as a coastal city not far from Shanghai. Its beautiful natural environment attracts a big number of rich homebuyers and investors," Li said.

"These factors, combined with the provincial economic situation, make a foundation for the city to build a wealth management center.

"Wealth management is likely to develop well in Qingdao if the city enjoys favorable government policies in terms of wealth management products and mechanisms," he added.

Li stressed the local government should make real reforms rather than simply using the financial pilot zone as a political achievement.

"Financial pilot zones in some Chinese cities still lack substance, putting micro-loan companies or Internet finance companies together in a few blocks.

"The next step of financial reform depends on the further opening of market access, such as allowing private capital to set up banks," he said.