Position : Investment Climate and Policy>> Investment Policy>> Policy on Shanghai's District and County>> pudong
Attraction Policy of Foreign Capital in Pudong
Time:2007-11-21
  An comprehensive investment environment is further improved. Quality service was offered so as to attract more foreign investors to establish their business in Pudong. In 2005, a number of 1,734 projects with FDI was signed, or 42.4% of Shanghai?s total and an amount of US$5.654 billion of contracted foreign capital marking an increase of 75.4%, or 40.9% on a municipal level. The actual capital reached US$3.111, an growth of 30.8%. Additional 738 projects went to Pudong with a registed capital of US$ 8.411.
        Contracted Capital Increased Greatly And Actural Capital Hit The Record High
        Fifty nine major projects with an investment exceeding US$10 million, 16 less in number whereas the amount increased by US$1.78 billion, 64.8 % more than the previous year. More capital had been used with an average of US$3.26 million for each individual project, an increase of US$1.35 million more. US$0.26 billion was introduced each month on average. Tertiary sector of industry remained the major destination of investment, which employed more capital than the second industry did with a ratio of 30.4:69.6. the proportion of capital dropped moderately in the tertiary sector. A number of 1,524 projects was subject to foreign investment, a growth of 8.3%, with 87.9% of the total in Pudong. The contracted foreign capital was US$3.932 billion, or 58% up and making 69.6% of the total. The actual foreign capital amounted to US$2.234 billion, a growth of 66.6% and making up 71.8% of the total. In the tertiary sector, there was an increase in transportation, warehousing and postal service, attracting an amount of contracted capital of US$1.148 billion, and an increase of 3.2 times of the previous year. In spite of the small number in housing, the size drew more attention with an average of US$19.76 million for each project. Retail and wholesale, leasding and service follow suit in attracting investment, maintaining contracted foreign capital of US$1.76 billion. An amount of US$1.721 billion went to the second industry, rising by 1.4 times with US$1.623 billion. By the year end, the investment in tertiary sector exceeded that in industrial sector. Pudong accommodates sixty four headquarters of multinational companies, ninety three foreign funded research institutes, making it the destination of research-oriented companies.       
        Additional Capital Coming From Foreign Funded Companies
        With a better investement environment, a big supply of quality human resources as well as sufficient financial resources, the confidence of the foureign investors are greatly boosted. As the shortage of industrial elements such land become evident, a great number of foreign funded companies started injecting additional capitals in Pudong so as to expand their business. 947 projects received more money, with contracted foreign capital of US$3.394billion, accounting for 60% of the annual contracted foreiegn capital, a growth of 10%. Four companies?Huahong NEC, Zhongxin International, Bayer and Global Finance Center---made extra investment exceeding US$1.6 billion. Forty two projects obtained additional capital exceedidng US$ 10 million. On average, each project with additional capital received an amount of US$58.92million-contracted foreign capital. These projects are mostly in industry, retail and wholesale, information transfer, computer service and software production. 45% of the additional capital went to indurstrial sector. More than sixty countries and regions signed contracts of foreign direct investment with Pudong New Area, in which the contracted foeign capital of US$1.682 billion were from the Asian countries and regions, making 29.7% of the total investment. An amount of US$0.698 billion and US$0.683 were repectively from Japan and Hongkong SAR. Taking advantage of the status of free port, many foreign investors made registration as a stepping stone to make further investment elsewhere in the world. Contracted capital of US$2.474 were from the two places, taking 43.8%.       
        A similar amount was injected by domestic investors this year as that of the last year.
        An additional 738 projects were introduced with registred capital of 8.411billion yuan. As a result, there has been 9,322 projects by Chinese investors with registered capital of 60.295 yuan. By the year end, among the 240 big-sized enterprises which were assessed by the Shanghai government, 93 are situated in Pudong, or making 39% with registered capital of 33.391 billion yuan.
        A centralizing effect of the headquarters of big Chinese companies has been formed . 28 home companies sit their headquarters or subheadquarters in Pudong. Big projects took lead in home investment. 52 companies registered capital exceeding 50 million yuan, amounting to 5.144 billion yuan. Home investment, led by capital from Beijing, Zhejiang, Jiangsu and Anhui, is focused on the tertiary sector of industry. Mainstream capital comes from Zhejiang and Jiangsu whose investors are private companies. By the year end, 105 agencies of state-level governments and big companies had set up Shanghai business offices in Pudong: 54 centers are for the government agencies and 51 for big companies.     
 
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