Shanghai Hongqiao on track as industrial agglomeration hub

Over the past year, Shanghai Hongqiao International Central Business District, a fertile ground for industrial agglomeration and key enterprises, has witnessed a robust growth in its economy, leadership, and competitiveness, becoming a new benchmark for the rapid development of the Yangtze River Delta region and a landmark for two-way opening-up.

Focusing on "technological innovation, industry, and finance", the Hongqiao International CBD introduced a number of projects and innovative companies in February.

"We value factors, such as the business environment, capital, talent, and local industries, in Hongqiao and the 'great scientific and technological innovation' attracts us most. This is a win-win solution and enterprises will have access to the strongest resources around the world," said Lu Lu, chairman of Shanghai Meikong Private Equity Fund Management Co Ltd.

Statistics show that the Hongqiao CBD is home to 14,665 enterprises specializing in scientific research and technical service, accounting for 17.5 percent of the city's total. The number of its "little giant" companies that focus on niche industries with cutting-edge technologies and great growth potential accounts for more than one third of the total in Shanghai.

Peng Lei, founder and CEO of Tiger Technology, said the company is interested in not only Hongqiao's geographic advantage and talents, but also its "great scientific and technological innovation," a major driving force for the development of enterprises.

In 1996, Jiangsu Shemar Power Co Ltd started its business in Rugao, Jiangsu province. In 2016, the headquarters of Shemar Power settled in the Hongqiao CBD.

Wu Jing, general manager of the company, said Hongqiao is the bridgehead for enterprises in the Yangtze River Delta region to go global.

Wu said that the management committee of the area helped them to launch overseas projects. Today, Shemar Power's products, technologies, and solutions cover countries including France, Italy, Belgium, Saudi Arabia, South Korea, South Africa, and India.

Hongqiao not only helps local enterprises go global, but also supports multinational companies enter the Chinese market.

On Sept 28, 2022, a joint venture established by two multinationals, Denmark's AVK and Switzerland's InterApp, was established in Hongqiao, the only one of its kind in the Asia-Pacific region.

Xie Yun, product manager of the joint venture, said, "In the future, we will make full use of the exhibition resources of Hongqiao, carry out in-depth cooperation with more Chinese partners, and boost innovations in renewable materials, clean energy, and intelligence."

In 2022, the paid-in foreign investment in the Hongqiao CBD doubled and the trade volume increased by 8.6 percent. In that period, the area attracted investment of nearly 130 billion yuan ($18.66 billion), up 60 percent year-on-year.