Shanghai - Shanghai Lujiazui Finance and Trade Development Zone

Shanghai Lujiazui Finance and Trade Development Zone (Shanghai Lujiazui FTDZ)

Facts and Figures (2007)

Source: Shanghai Lujiazui Finance and Trade Development Zone Co. Ltd

Introduction

The Shanghai Lujiazui Finance and Trade Development Zone (Shanghai Lujiazui FTDZ) is located in the Pudong New Area in the eastern part of Shanghai, and was approved by the State Council to be a state-level development zone in 1990. It covers an area of 31.78 km², and is the only state-level development zone in China that was named the financial and trade zone. Shanghai Lujiazui FTD is close to Jinqiao Export Processing Zone, Zhangjiang High-Tech Park and Waigaoqiao Free Trade Zone, which are the three state-level development zones in the Pudong New Area.

Shanghai Lujiazui FTZ has a convenient transportation system, and is within half an hour’s drive to Shanghai Railway Station, Shanghai Hongqiao Airport and Shanghai Pudong International Airport, which connect the zone with other major domestic and international cities.

The well-established waterway network in Shanghai makes Lujiazui FTDZ easily accessible. Shanghai Port is the busiest port in the world. In 2007, it handled 560 million tons of cargo and 26.2 million TEUs, ranking first in the world in terms of cargo traffic and ranking second after Singapore in terms of container throughput in 2007.

Investment Climate

Pudong New Area is an important economic and financial base in Shanghai. In 1990, the central government of China approved the development of Shanghai Pudong. Later in 2005, the State Council authorized Pudong New Area as the pilot area for comprehensive reforms. In 2007, the GDP and utilized FDI in Pudong reached RMB 275 billion and US$3.3 billion, comprising 22.9% and 41.7% of Shanghai’s total respectively.

Lujiazui is an important financial district in Pudong New Area, and there are a large number of domestic and overseas financial institutions in the area. The approval from the State Council for constructing Shanghai Lujiazui FTZ further affirmed the area's position as a financial center in Shanghai.

Shanghai Lujiazui FTZ specializes in the banking, security and insurance industries. It also welcomes investments in modern commerce, exhibitions, tourism, leisure and entertainment, and other modern service industries.

By 2007, over four-hundred foreign and domestic financial and insurance institutions had commenced operation in Shanghai Lujiazui FTZ. To date, the number of financial and insurance organizations at branch level has surpassed one-hundred and fifty-six. The major investors include Standard Charted, Citibank, HSBC, Hang Seng Bank, ABN AMRO, Bank of East Asia, et cetera.

There are seventy-five office buildings in Shanghai Lujiazui FTZ, which have attracted over three-hundred multinational companies. Shiseido, Itochu, KAMATSU, Aurora and a further seventy-one international firms have installed their headquarters in mainland China. The area has also attracted a large number of international hotel chain giants, such as Shangri-La, Hyatt, Sofitel, Marriott, et cetera.

Shanghai Lujiazui FTZ is also home to the Shanghai Stock Exchange, the Shanghai Futures Exchange, the Shanghai United Assets and Equity Exchange and the Shanghai Real Estate Exchange Center. Shanghai Stock Exchange, set up in 1990, is the larger one of China’s two stock exchanges, the other being the Shenzhen Stock Exchange. By 2007, eight-hundred and sixty enterprises were listed in the stock exchange, with total market values adding up to RMB 26.98 trillion at the year end.