2013 Briefing on Shanghai’s Commerce and Investment

2013 Briefing on Shanghai’s Commerce and Investment

Zhang Xinsheng Party Secretary and Vice Chairman of

Shanghai Municipal Commission of Commerce

Ⅰ Shanghai’s commercial development in 2012Ⅰ Shanghai’s commercial development in 2012

In 2012, under the strong leadership of Shanghai Party Committee and Municipal People’s Government, with concerted efforts from foreign agencies and MNCs in Shanghai, the business sector well accomplished all the tasks designated for development and injected new vigor into Shanghai’s development through transformation.

Establish a big

platform

Serve a huge

market

Promote opening-

up

Optimize overall

environment

Last year, Shanghai’s commercial sector enjoyed steady development Structural

adjustment continued to speed up

The economy was further driven by consumption

Merchandise sales Social consumer goods sales

Total volume:5.4 trillion RMB

Up by 16.8% year on year

Total volume:738.7 billion RMB

Up by 9% year on year

The commercial added value took up bigger share in Shanghai’s GDP, boosting economic growth.

30%

24%

As share of national totalAs share of

national total

As share of Shanghai’s total

As share of Shanghai’s total

Last year, Shanghai’s commercial sector enjoyed steady development Structural adjustment continued to speed up

Structure of foreign trade continued to be optimized

The import and export of trade in services realized 148 billion USD, up by around 15% year on year. Trade in goods decreased by 0.2% year on year, where import grew faster than export, general trade faster than processing trade.

According to statistics by Ministry of Commerce and several provinces and municipalities, paid-in capital nationwide was down by 3.7% year on year, while shanghai was 24.2 percentage point higher than national level, with growth rate faster than any provinces and cities in East China.

Last year, Shanghai’s commercial sector enjoyed steady development Structural adjustment continued to speed up

22.338 billion USD, up by 11.1% year on yearContractual

foreign capitalContractual

foreign capital

Paid-in capitalPaid-in capital

Foreign capital absorption hit a record high

15.185 billion USD, up by 20.5% year on year

Foreign investment in the tertiary, second and

first industry accounted for 83.5%, 16.4% and

0.1% of paid-in capital, respectively. Service

industry enjoyed the largest share.

Annual FID totaled at 3.24 billion USD up by 22% year on year

1

Private enterprises made active investment merger and acquisition witnessed an increase.

2

Newly signed foreign contracted projects stood at 10.31 billion USD.3

Foreign economic cooperation was proactively promoted

Last year, Shanghai’s commercial sector enjoyed steady development Structural adjustment continued to speed up

Over the past year, new progress was made in critical business sector

The main body of national exhibition complex in Hongqiao business district came into operation smoothly. The 1st China (Shanghai) International Technology Fair, approved by the State Council, will be held from May 8th to 11th this year.

Further promote comprehensive pilot projects in modern service sector. Focusing on urban consolidation system, modern business area and public platform of international trade center, the first batch of pilot projects went on well with paid-in investment 4.76 billion RMB. An array of forward-looking and strategic projects and economic platform covering different industries and departments emerged.

Modern business districts and commodity trading platform developed faster. Shanghai gained deeper pricing influence and larger say in market.(e.g. deformed steel bar swap contract, with price index by Mysteel as benchmark, got listed in NYMEX)

Exhibition

Public Platform

Trade

The exemplary and influential

role of the platform further

manifest

Over the past year, new progress was made in critical business sector

The number and energy level of regional headquarter of MNCs was further enhanced

By now, Shanghai hosts 265 holding companies

25 holding companies newly established

50 regional headquarters of MNCs

17 R & D centers newly set up

403 regional headquarters of MNCs

351 R & D centers

Policies on regional headquarters of MNCs were improved. Measures, such as Implementation Recommendation on the Regulation of Encouraging MNCs to Establish Regional Headquarters in Shanghai, Recommendations on Encouraging FIEs to Establish R & D Centers in Shanghai, were amended and issued.

Over the past year, new progress was made in critical business sector

More fields were opened-up and methods were improved

New progresses achieved in opening-up of service industryPudong New Area as one of the first pilot areas for commercial factoring projects in China

Innovation in investment promotion

More utilization of foreign capital in Strategic and emerging industries

Over the past year, new progress was made in critical business sector

Overall environment for commercial development were further optimized

Ⅱ Vision for business development in 2013Ⅱ Vision for business development in 2013

Merchandise sales grows by about 15% in volume, consumer goods

sales grows by about 8%. The scale of trade in goods will be

stabilized, while volume of trade in services will be up by around

12%. Utilization of foreign capital will keep growth momentum

with upgraded quality, added by around 35 regional headquarter of

MNCs. Outbound investment increases by 10%.

ⅰ.With implementation of Rules on Promoting the Construction of International Trade Center in Shanghai, dedicated efforts will be made to transform Shanghai into an International Trade Center

ⅱ.With optimizing structure, exploring depth and facilitating benefit as focus, endeavor will be made to cultivate new advantages of open economy

Proactively participate in strategic and prospective researches on deepening opening up under the new circumstances

Improve related policies on supporting Asia Pacific headquarter of MNCs

Encourage Chinese enterprises to go global

Take proactive action

Enhance strength and effectiveness of holding and participating exhibitions overseas, facilitate investment in self-owned brands and R & D

Increase comprehensive advantages of foreign capital utilization, improve overall benefit

Strengthen capacity of transnational operation, encourage investment, M & A overseas so as to upgrade foreign contracted engineering projects and labor service cooperation

Pursue innovation-driven growth

ⅲ.With emphasis on boosting domestic demand and consumption as so to benefit the people, efforts will be made to strengthen the role of consumption in economic growth

Steadily enlarge consumer spending

e.g. life services

Actively promote consumption hot spots

e.g. community commerce

Strongly support technological innovation and

applicatione.g. e-commerce

Based on strategy of boosting domestic demand, Recommendations on Deepening Reform of Circulation System and Accelerating Development of Circulation Industry will be issued soon so as to further improve the long-term mechanism of expanding consumer demand and cultivate new growth point of consumption

Based on strategy of boosting domestic demand, Recommendations on Deepening Reform of Circulation System and Accelerating Development of Circulation Industry will be issued soon so as to further improve the long-term mechanism of expanding consumer demand and cultivate new growth point of consumption

ⅳ.With focus on promoting comprehensive pilot projects of modern service industry, endeavor will be made to step up the development of modern service industry

Develop platform economy

Develop platform headquarter companies thatlocate core operation of initial design and end marketing in Shanghai and that possess resources and launch e-commerce

Accelerate construction of public platforme.g. China (Shanghai) International Trade Networks,China Foreign Economic Policy Research Platform

Pursue innovation in emerging industries

Build up urban consolidation system

Promote model: place order on the internet, pick up goods in real store

Promote the in-depth and uniquedevelopment of International business service areae.g. wine, gold and jewelry

ⅴ.With emphasis on improving government administration and service, efforts will be made to create a competitive environment for business development

Stronger support to companies

More favorable business environment

Thank YouThank You