Shanghai’s Xuhui district entices Hong Kong businesses with subsidies, offers 12 plots of land to Hong Kong developers
- The centrally located and historically significant district offers up to US$2.5 million in subsidies for Hong Kong businesses and professionals
- The district is also offering Hong Kong developers the chance to bid on about 2 million square metres of commercial and residential land
The central Shanghai district of Xuhui is campaigning to lure Hong Kong businesses and professionals with up to 17 million yuan (US$2.5 million) in subsidies while also offering Hong Kong builders the chance to develop about 2 million square metres of land.
The local government of Xuhui, the heart of China’s financial hub, is offering qualified Hong Kong enterprises that establish their headquarters there up to 5 million yuan in launching subsidies as well as 12 million yuan in office leasing allowances. At the same time, the district is inviting Hong Kong developers to bid on 12 plots of land in the district for both commercial and residential use.
“Hong Kong and Xuhui have a long history, and enterprises from Hong Kong have witnessed and been intensively involved in the development of Xuhui in the past 30 years,” said Xuhui Party secretary Cao Liqiang during an investment promotion briefing in Hong Kong on Friday. Total investment by Hong Kong firms in Xuhui exceeds US$25 billion, he added.
“We are hoping to move forward in our collaborations with Hong Kong, leveraging advantages of both sides, and see how Xuhui can help Hong Kong’s economy and companies to grow.”
Hong Kong professionals working in specific industries who relocate to Xuhui will be welcomed with favourable policies, such as monthly rental subsidies of 1,000 to 2,000 yuan, medical arrangements and a green pass for easier travelling between Hong Kong and Shanghai, Wei Lan, director of investment promotion for the district, told The Post on the sidelines of the meeting.
The favoured industries include digital economy, life and health, cultural innovation, modern finance, low-carbon energy and intelligent vehicles.
“We see that both the pillar businesses and sectors that Xuhui is looking to establish and what Hong Kong is poised to help lead are quite closely correlated,” Wei said.
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Xuhui district, in the southwestern part of Shanghai, hosts the jewel of the city, the French Concession. Ruled by France from 1849 until 1943, the area is well known for its tree-lined lanes and well-preserved architecture.
It is now home to more than 3,400 foreign companies and 145 multinational headquarters and research-and-development facilities, including McDonald’s flagship store and its China Food Innovation Center, as well as Danish toymaker Lego Group’s China headquarters.
Last year, Xuhui district gained foreign investment of 1.24 billion yuan, up 31.9 per cent year on year, the biggest increase among all districts in Shanghai.
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The district, which encompasses 55 million square metres along the Bund overseeing the Huangpu River, is no stranger to Hong Kong developers.
The project, now named ITC, boasting two eight-floor office towers, a premium shopping centre and a luxury hotel, is expected to be fully completed by late 2024.
