Shanghai market review

Set Up Your Company in China - Shanghai Market Overview

In market opening up, Shanghai always runs among the foremost in China. There has been lots of No.1 achieved in Shanghai"s opening up of service trade to foreign investment particularly after China"s accession to WTO. Shanghai is the only city, which firstly opens up in all the area of retailing, banking, insurance and telecommunications.

Market System

In order to make it the most well ordered city in China, Shanghai is now actively integrating the loose market to enhance market level and improve legal environment to protect intellectual property rights. Shanghai issued ¡°Suggestions of Shanghai Municipal Government on M&A of SOEs by Foreign Investors¡± in 2002. In this year, non-public economy increases 18% higher than public economy£¬accounting for 32% of the GDP. In intellectual property protection, Shanghai has formulated 6 intellectual property laws and regulations. Besides, there are 3.78 lawyers among 10000 Shanghainese, which is 3.5 times that of Chinese average. There are over 50 foreign law firms in Shanghai£¬accounting for 1/3 of the total in China. Shanghai"s 160 municipal-level industrial associations also play important role in government decision-making and industrial self-discipline.

Social Credibility

Shanghai is particularly proud of its social credibility information system, the largest in China. In July 2000, Shanghai opened individual united credibility information system firstly in China. And in March 2002, Shanghai enterprises united credibility information systems was opened. Today 2.93 million persons" (1/4 of Shanghai"s registered population) credibility files are covered by individual credibility system. Some 480, 000 enterprises have been incorporated into the enterprise credibility system, covering all enterprises in Shanghai.

Financial Market

As the financial center of China, Shanghai boasts the most comprehensive financial market system in China mainland. In 2002, Financial Service Office was established to strengthen the service function of local government. The financial market in Shanghai includes securities, inter-bank offerings, bonds, futures, foreign currency and gold, etc. Among it, there are 730 listed companies and 775 stocks are issued on Shanghai stock market (54 B shares, total amounts up to USD3 billion, which have attracted many foreign investors and pave a new path for them to invest in China. The exchange value of stock on Shanghai stock market in 2002 accounted for 60% of China"s total, with amount up to RMB2800 billion. Shanghai Gold Exchange opened in 2002, which indicated China has established all the Exchange Markets for main financial products and made Shanghai be the domestic financial center of China.

Foreign Invested Financial Organizations

As more and more foreign financial units speeding up their coming into Shanghai, Shanghai"s financial market will be more complete and active towards world-level financial service. Shanghai has more than 3300 Sino-foreign financial units among which there are about 70 operative foreign financial units with 54 foreign banks and 15 foreign insurance companies. Four foreign banks have set up their Chinese headquarters in Shanghai, which consist of Citibank, HSBC, Standard Chartered and overseas Chinese bank. The lending and borrowing business made by Shanghai"s foreign bank accounts for China"s half and lending and borrowing in RMB even accounts for 80%. Thirty foreign banks have been approved to engage in RMB business and twenty-three have been approved to operate foreign exchange business in full scope in Shanghai. Undoubtedly, Shanghai is the financial center of China and is moving towards the international financial center rapidly.

International Exhibition

Shanghai"s burgeoning exhibitions and conferences greatly promote the formation of an international market and indicate Shanghai"s rapid rising in its international standing. The area of exhibition industry increases at the rate of 30%. Many world famous conferences have been held in Shanghai, such as Fortune forum, APEC, Shanghai 5 States Summit, ADB annual meeting, the 32nd ICC. Shanghai International mould expo has been listed in UFI. World Expo. 2010, which will be held in Shanghai, will make several records, for instance, the first time to be held in a developing nation, the largest in area and visitors. Shanghai will make an investment of over USD3 billion to it.
If you want to set up REPRESENTATIVE OFFICE or WFOE [Wholly Foreign Owned Enterprise] or JV(Joint Venture) in shanghai, you can check our website to get the information about what kind of paperwork you have to prepare,what is the procedure and the cost.

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