l          Brief introduction

Putuo District，situated in the northwest part of Shanghai， is one of central urban districts of Shanghai. It covers an area of 54.99 sq. km, and has a registered population of 843.6 thousand. The district completed added value of RMB 6.532 billion Yuan, and realized fiscal revenues of RMB 3.702 billion Yuan in 2004.

Benefited from its superior geographical position and convenient land traffic, Putuo District holds a key overland post of Shanghai. The city-entry section of Shanghai-Nanjing Expressway passes across the entire district from east to west; Shanghai-Jiading-Liuhe Expressway echoes with the expressway above each other, south and north; the Yangtze River valley and northeast and northwest regions may be reached from Putuo District along the national roads 204, and 312; the Suzhou River has a section of 14 km long flowing by/through the district. Three ring roads, including Inner Ring Road, Mid Ring Road, and Outer Ring Road, of Shanghai passing through the district, plus completion of construction of other traffic facilities such as metro No.7 and No.11 lines, and light railway No.3 line, basically form a frame of 3-D clipper transport road network.

Putuo District is a treasure place to for enterprise investment and development. Efficient and quality service attracts a great number of businessmen from all directions in the last years. A lot of well-known corporations in the world, such as METRO Asia, Schneider China, and OBI China, have settled their headquarters here.

Putuo District is a hinterland to develop modern service industry in Shanghai. Construction of the five big key zones, including Zhenru City Sub-center, Changfeng Ecologically Friendly Business Quarter, Zhenbei Business Group Throng, Taopu Urban Industry Park, and Changshou Comprehensive Service Band, will be quicken in the coming years. Lands which total area reaches 12 million sq. m. may be used for development, and the total construction area planned will reach 15 million sq. m.

Putuo District is a land of happiness for harmonious economic and social development. There are Yufo Temple, Zhenru Temple, Huxi Mosque, and Changfeng Park, the largest landscape park in Shanghai, advanced, and function-perfect scientific and technical, cultural, gymnastic, and medical treatment facilities, in addition to age-old cultural tradition, rich humanistic resource, dense cultural flavor, and elegant residence environment in the district.

l          Major advantages

1.        Superior position

Putuo District is a hub of overland communication of Shanghai thanks to its unique geographical advantage.

There are two expressways of Shanghai-Nanjing and Shanghai-Jianding-Liuhe, two national roads of No.204 and No.312, and Shanghai West Railway Station; the largest railway marshalling station in Shanghai in the district and New Shanghai Railway Passenger Station just are close vicinity to the district; Inner Ring Road, Mid Ring Road, and Outer Ring Road, as well as metro and light railway lines, including No. 3 line, No. 7 line, No. 11 line, and No. 14 line, traverse the district, and consequently, the condition to highway-railway through transport in the district also is very attractive. 

It only takes only 8 minutes to drive from the district to Hongqiao International Airport.

It takes only 15 minutes to drive to Zhanghuabang Container wharf.

2.        Service is the first resource of Putuo

The district gives priority to developing regional economy and widening opening up to the inland and outside world in its economic development. To transform government functions and create good investment climate, it adheres to “Service is the first resource of Putuo”. Businessmen at home and abroad have swarmed into the district. A large number of well-established enterprises have made investment, started business, and achieved excellent performance in the district.  

3.        The city appearance of Putuo District is changing with each passing day, bringing a good residence environment

The virescence-covering rate of reaches 21% here, taking a leading position in the central metropolitan districts of Shanghai; residential quarters, close to a hill and/or beside a greenbelt, boast of good image, complete functions, and perfect facilities. East China Normal University, the West Campus of Tongji University, and Shanghai University of Engineering Science are situated in the district. Various social undertakings, including science, education, culture, health, and physical education, achieve overall development, meeting the need of the masses for living and working in peace and contentment and other diversification requirements.

l          Industrial feature

Putuo District is a newly jumped-up commercial center in Shanghai. Its commercial turnover and the market volume of business always rank in the front row in the central metropolitan districts of Shanghai. Near hundred large-size business office facilities, such as Yaxin Living Plaza, Huayuan World Plaza, Shanghai YIBAI Huxi Business Mansion, six big supermarkets, including METRO, Carrefour, and LooGoo, three big supermarket dispatching centers, including Lianhua, Hualian, and NGS, and a hundred and more large-size markets of means of production and means of subsistence including non-ferrous metals, automobile, chemical industry products, agricultural and subsidiary products, and others have formed here. The sole silver spot transaction market in this country has settled in Putuo District, too.

Putuo District is an important industry base of Shanghai, and the cradleland of Shanghai modern industry. There is an industrial system, which is complete in range, including fine chemicals, bio-pharmaceutical, printing and packing, furniture, and foods industry. There are a few industry parks such as Changzheng, Xinyang, Changfeng, and Taopu, and garden-like standard factory buildings of 600 thousand sq. m have been completed in these parks, in addition to 1500 and more industrial enterprises including Shanghai Banknote Printing House, Hero Pen Factory, Jinye Packing, Jiahua Fine Chemicals, Sunv Pharmaceutical.

The real estate industry in Putuo District has developed into one of pillar industries of the regional economy. The advance sale area of commercial housing reached 9.45 million sq. m, and the transaction area of inventory housing reached 5.18 million sq. m., annual increase of total turnover come up to about one million sq. m. from 2000 to July 2004. The advance sale area of commercial housing has ranked first among the central metropolitan districts in the successive four years; while the transaction area of inventory housing maintained an annual growth rate of 60% or higher form 2000 to 2003, showing a good development momentum in the tertiary market.

l          Development Planning

In accordance with the strategic target of Shanghai to build “Four Centers”, the functions in commerce, logistics, R&D, and others will be emphasized to form a regional characteristic of “lobby economy”.

The so-called “lobby economy” has the following six big pillars:

1.       To work hard for building into a nation-level logistics park.

2.       To strive for becoming a transnational commercial purchasing center.

3.       To build into a new-type terminal market that makes feature of E-commerce all round.

4.       To cultivate actively creative R&D bases.

5.       To make all efforts to create a commercial culture block taking a noted brand leading shop as a lead horse, group commercial leisure and recreation as its characteristic.

6.       To quicken the footstep to build modern living community taking new-type residences with ecological water scenes as its mark.

The District Government and the its departments concerned will provide normal, quality, efficient, quick, and humanized service for domestic and oversea enterprises coming to invest here.

l          Investment environment

Now, the mainstream economy of Putuo District is moving form manufacture, commerce and real estate as “Old Three Industries” to modern logistics, modern service, and advanced manufacturing as “New Three Industries”. It has become an emphasis in the economic construction of Putuo District in the coming years to boost construction of the modern service cluster zone. As planned, five big plates, including Zhenru City Sub-center, Changfeng Ecologically Friendly Business Quarter, Zhenbei Business Group Throng, Taopu Urban Industry Park, and Changshou Comprehensive Service Band, will form, the land with total area of 12 million sq. m. will be developed, total construction area of 15 million sq. m. will be completed as the planned. A frame of Putuo District as a modern service industry carrier will appear. Construction of Changfeng Ecologically Friendly Business Quarter is steadily advancing, the land of about 2000mu (about 133ha.) has been bought, taking 66% of the land shall be acquired; #2 land block (used for the hi-tech amusement project as planned) has been ordered by Beijing Tianhong Group; The bid-inviting work of the land blocks #1, #7A, #5B is in preparation, recruiting of the international scheme and formulating of the detailed control planning of Zhenru City Sub-center are ceaselessly pushed forward; The Six Big Carriers Project of Zhenbei Business Group Throng is striding forward in well order; Construction of The commercial part of Xinglida International Exhibition and Transaction Center is about to enter the phase to place the roof; Piling job in the commerce building of Luzou Huban (Oasis Lakefront) Commercial Harbor has commenced; The building construction of Kaixuan (Triumph) Living Plaza has commenced; Construction of the headquarter of NGS has progressed to the fifth story; The application work for the Logistics Bonded Center (B-kind) of Northwest Comprehensive Logistics Park is smoothly handled; It has gradually become clearer to locate the function of Changshou Comprehensive Service Band, and the business invitation work of the buildings is gradually becoming the focus of the work.

l          Preferential policy

1.For a production enterprise, it may be exempt from all income tax in the first two years from the profit-making year, and may be exempt from half of income tax in the next three years provided that its operation period is longer than ten years.

2. The enterprise established in Putuo District, examination and approval procedure of the application for its project, registration with the administration for industry and commerce, taxation administration, examination and approval procedure of local foreign economic and trade commission, and matched utilities will enjoy a “on-stop service”.

3. The export-oriented enterprise may enjoy preferential treatment to reduce a half of income tax as the rate of tax currently in effect provided that the production value of its exported products account for more than 50% of total output value in the same year.

4. The newly-established enterprise may enjoy exemption from all land-using fee, and from the adjustment tax in the construction period.

5. The foreign investor of an enterprise, if he/she re-invests his/her own profit as the investment of expanding the production facility for increasing export of products, or as the additionally increased registered capital, part of business income tax or all business income tax corresponding to the newly increased investment may be returned after the investor applies and the application is approved by the taxation authority, provided that the operation period of the enterprise is not  shorter than five years.

6. The investor who puts his/her fund into the third industry, such as tourist service, civil residence development, infrastructure construction, municipal engineering, and information consultation, may enjoy preferential prices of land and hired building, and preferential policies.

7. The enterprise with annual tax and profit over RMB1 million may enjoy the preferential policies offered by the District Government based on the principle of “a separate discussion for a single problem”, in addition to the preferential policies above.

8. The invested new-technical enterprise, or the income in joint trial manufacture and the pilot test performed by a science research institution, college and enterprise together may be exempted from taxation, and enjoy preferential treatment to exempt or reduce taxes in the initial stage of investing the product. Approval and confirmation of hi-tech products shall be handled by the District Science and Technology Commission under active coordination of the District Business-inviting Office. It may enjoy the tax relief policies regulated by the nation after its approval and confirmation.

9. For the enterprises settling in the district, the government will coordinate with sectors concerned, including comprehensive govern, environmental protection and hygiene, fire control and public security, administration of foreign population, and industry and commerce registration and taxation, to help them to resolve problems possibly met by them and create a good investment environment.

10. For any intermediate agency or individual, if it or he/she has introduced project and the fund concerned has come to the account, the District Government will give general award based on the scale of the project and the amount of the fund introduced. Other requirement, if any, may be negotiated.

l          Entering enterprises

The foreign-invested enterprises settled in Putuo District mainly include:

METRO                                          APW Electronic

Carrefour                                      REMEC Electronic Communication

OBI                                                 Hanxin Wire & Cable

Schneider Industrial Control     Schneider Logistics

Sender Real Estate                     PO-LI Foods

Konecranes

l          Business-inviting projects

1. Zhenru City Sub-center

Zhenru City Sub-center is one of the four big city sub-centers of Shanghai. It extends to Langao Road in east, Zhongshan North Road and Wuning Road in south, and neighbors Zhenbei Road (Mid Ring Road) in west, and is close to Shanghai-Nanjing Railway in north, as the planned; And its in-plan used land will occupy an area of about 6 sq. km., in which the core zone will take about 1.2 sq. km.

Zhenru City Sub-center is designed to bear partial functions of city-level CBD, which highlights the development of various specialized production service functions and aims at gradually building it into a productivity service center and life service center for both Shanghai and the Yangtze Delta.

The planned sub-center may be divided into three levels:

(1)     Core function zone, where some commercial, exhibition, and hotel facilities will be built;

(2)     Mixed function zone, where mixed functions of apartment houses, residence buildings, office, commerce, catering, and recreation facilities will be developed;

(3)     Periphery zone, where mainly includes the both uptowns of Zhenru and Shiquan.

The gross developed area of in–plan various buildings will be controlled below 6.4 million sq. m., in which 1.8 million sq. m is used for business office, 0.5 million sq. m for commercial service, and 3.54 million sq. m for residence. The gross developed area in the core zone will be about 2 to 3 million sq. m.

2. New Long March Business Mansion

New Long March Business Mansion is situated at the street corner between Zhenbei Road and Meichuan Road; northward here and METRO face each other across Meichuan Road; the mansion neighbors Macalline by Zhenbei Road in east, and the Mid Ring Road under construction passes across here.

New Long March Business Mansion consists of four abutting buildings with different styles and functions, is a highlight spot at the intersection point of Zhenbei Road and Meichuan Road. Of all buildings there, the highest is the Business Mansion. The mansion integrating business office, meeting, and catering functions is an 18-storey intelligent A-grade office building, showing perfect harmonization between human and nature. There are advanced and high-speed communication network, intelligent building management facility, individualized building management, and five-star level business space provided for clients.

Total floor space of New Long March Business Mansion, with total investment of RMB 170 million Yuan, cover a floor area of 34 thousand sq. m. Its No.1building with total floor space of 24890.4 sq. m is mainly used for business offices; No.2 building of 4954.9 sq. m for commercial show; No. 3, 4, and 5, integrating accommodation, recreation, leisure, catering, high-grade clubs, are used as auxiliary rooms of No.1 building. The project is the first business building project in Zhenbei Road Business Quarter that is open to business. Relying on the geographic superiority of Zhenbei Road and development of the zone in the coming years, it will grasp the developing opportunity of group-type business building, to launch on a new round of business inviting and investment introducing activity. Now, some companies, such as Shanghai Weilong Enterprise Development Co., Ltd., and headquarter of Red Star-Macalline, have moved into New Long March Business Mansion. As for No. 2 building, the final negotiation with Zhejiang SunBridge Industrial (Group) Co., Ltd., and Shanghai Yadier Decoration & Garment Co., Ltd. is under way. Fendi Hotel Management Co., Ltd. has moved into No. 3 to No. 5 buildings,.

3. Phase I of Customs Logistics Bonded Center (B-type)

Phase I of Customs Logistics Bonded Center (B-type), which will be built into a building of 166 thousand sq. m., occupies an area of 251mu (about 16.7 hectares), in which 36 thousand sq. m is used for business buildings including the Customs office building and the park administration building, 130 thousand sq. m is standard warehouses (containing a hazardous goods warehouse). Many bonded logistics enterprises may handle bonded warehousing, logistics, simple processing, and value-added service, import & export trade and entreport trade in the logistics bonded center. All domestic goods entering the center will be regarded as export, and thus enjoy export rebate; the enterprises registered in the center may be automatically entitled to handle import and export business, acting as international freight agents, and handle domestic freight.

Geographic position: Northwest Logistics Cuopu Base, occupying a space east of Jinying Road, southwest of Jintong Road, north of Wuwei Road.

Total investment: RMB600 million Yuan.

Progress of the Project: will complete and be put into operation in the last half of 2006

Cooperation mode: lease.

l          Service system

Shanghai Foreign Investment Service Center

Address:                       Rm. 1227 Bldg, 1B No.1668 Daduhe Rd., Shanghai, 200333

Telephone:                  52501421

Person responsible:  Zhang Haigang

l          Contact

Head of district:                    Hu Bingzhong

Vice head of district:            Bao Jianqiang

Undertaking department:   District Foreign Economic Relationship and Trade Commission

Person responsible:           Li Jianming

Address:                                No. 1668 Daduhe Rd., Shanghai, 200333

Telephone:                           +86-21-52564588 ext. various departments

Fax:                                        +86-21-52561423

E-mail:                                   waijw@ptq.sh.gov.cn