l          Brief Introduction of Hongkou District

Named after Hongkou Port, Hongkou District lies in the northeast of Shanghai, where Huangpu River and Suzhou Creek converge. Connected to Zhabei District in the west, it borders Yangpu District and Baoshan District in the northeast, as the only path for the two districts to reach the central area of Shanghai. Covering an area of 23.4 square kilometers, with a household registered population of 789,000 in 2004, it governs nine communities and one town. Mr. Zhu Rongji, the former mayor of Shanghai, once praised it as a “Land of Treasure”.

The district boasts of a developed regional economy and prosperous social undertakings. Through constant industrial upgrading, it has fostered an initial modern industrial system incorporating shipping service, knowledge service, an integrated industry of trade, commerce, culture and tourism and the real estate industry as the four major components. Hongkou District is also known for its cultural heritage, educational institutions and medical resources.

l          Major Advantages

1. Unique Geographical Advantages

Hongkou District, particularly the North Bund, enjoys a unique geographic location. Sitting in the north and facing the south, the North Bund possesses a water-front as long as 3.2 km with graceful views. Together with the Bund and Lujiazui Financial Zone, it forms a “Golden Triangle” CBD which best presents Shanghai’s urban image. With its favorable scenery and advantageous water depth, the North Bund provides a predominant geographical foundation for the development of shipping service industry, especially the cruise economy. Apart from that, connected to Yangpu District and Baoshan District, Hongkou can be considered as the gateway for Shanghai’s northeast region, which creates favorable conditions for Hongkou’s further development.

2. Profound Cultural Heritage

Its profound cultural accumulations have earned Hongkou the title “National Cultural Model District”, the only one in Shanghai. The first cinema in the Far East and the first arts school in China were born in Duolun Road, Hongkou. Many renowned figures in China’s modern cultural history, such as Lu Xun, Mao Dun, Ju Qiubai and Ding Ling had lived or worked in Hongkou successively. Lu Xun Park, Hongkou Football Stadium, Duolun Road and Liyang Road form an “Elegant Culture Circle” featuring the combination of celebrity relics, arts exhibitions, cultural, sports and tourist activities. Besides, the district is also a gathering place of abundant cultural resources, such as Lu Xun Memorial, the Museum of the Left-wing Authors Alien, Uchiyama Bookstore, the former residences of Lu Xun, Shen Yinmo and Mao Dun, as well as Zhu Qizhan Art Museum. The profound cultural accumulations constitute a favorable foundation for the development of Hongkou’s modern trade, commerce and tourism.

Meanwhile, Hongkou District boasts of a long cultural history of its shipping industry. The North Bund is one of the cradles for Shanghai’s shipping industry and Xiahai Temple was where fishers prayed for good luck in the past. The water-front area in Hongkou was once the distribution center for foreign imported goods.

3. Mature Educational and Medical Facilities

Education is a powerful strength of Hongkou District, including 48 primary schools, 54 ordinary middle schools as well as a batch of famous higher education institutions, such as Shanghai International Studies University and Shanghai University of Finances and Economics. With the solicitude and support from the district government, Hongkou District is witnessing the formation of a life-long education system during which the before-school education is one of the priorities.

This district also possesses abundant medical resources and a wholesome public hygiene system, including several renowned hospitals, such as Shanghai No. 1 People’s Hospital, Yueyang Hospital and Hospital of Integrated Traditional Chinese and Western Medicine.

l          Major Industries

With a rapid advancement of the modern service industry, Hongkou District now has fostered an initial industrial system focusing on shipping service, knowledge service, an integrated industry of trade, commerce, culture and tourism and the real estate industry.
1. Shipping Service

Shipping service is Hongkou’s unique and most prosperous industry with the longest history. It is also the core industry in the future. It was more than a century ago that Hongkou started its shipping industry with the North Bund as the central area, and through the long development a profound industrial foundation has been established. In the past decade, the major function of Hongkou’s shipping industry has been transformed from the original loading and unloading services to the shipping management services and other matching services. At the end of 2004, the North Bund Shipping Service Zone was listed into one of Shanghai’s modern service concentration areas, positioned as an essential part of building Shanghai into an international shipping center. The Shanghai Municipal Government has written the plan of “Constructing Dongdaming Road as A Shipping Service Street” into the “Master Plan of Shanghai City”.

2. Knowledge Service

The potential for the development of knowledge service industry in Hongkou District is obvious. The district has gathered together famous higher education institutions like Shanghai International Studies University and Shanghai University of Finances and Economics, scientific research institutes like Shanghai Institute of Technical Physics and Institute of Materials, and a great number of talented professionals. Recently, Hongkou District has been making great efforts to invite and foster a large group of professional economic appraisal and testimony organizations, such as law firms, accountant and auditor companies. Meanwhile, the number of professional consultancy organizations concerning management, medical care and health care has increased apparently, and the design and R&D companies, including the designing of architectures, decorations, garments, leather articles and bags and cases, and the development of computer software, information service, bio-medicine and new materials, have also witnessed a rapid advancement. In addition, education brokers, intermediary agencies and training schools have also formed their respective characteristics. To sum up, knowledge service has grown into one of the key parts of Hongkou’s regional economy.

3. The Integrated Industry of Trade, Commerce, Culture and Tourism

Trade and commerce is the traditional industry of Hongkou District, and North Sichuan Road is one of the three famous commercial streets in Shanghai. In 2002, North Sichuan Road started its new round of reconstruction, which shall revitalize this commercial street and bring the commercial, tourist, cultural and sports resources along the street into better performance. At the same time, the two sub-commercial centers in the district, Dabaishu and Tilanqiao, will rely on their modern commercial facilities to advance their entertainment and recreational functions.

4. Real Estate

As Hongkou District was once praised as one of the districts most suitable for living in Shanghai, its real estate industry has been quite prosperous and established several well-known brands. In order to promote a coordinated economic development, the district government recently has been endeavoring to upgrade the real estate structure through supporting the development of top grade office buildings.

l          Development Planning

In 2002, seizing the historic opportunity of the Comprehensive Development of Huangpu River Banks, the district government mapped out the strategic plan of “Giving Prominence to the Development of the Two Wings”, referring to an all-round development of the North Bund and the comprehensive reconstruction of North Sichuan Road. Based on Hongkou’s characteristics and its geographic advantages, with a resolution to actively involving itself into the master plan of building Shanghai into Four Centers (international economic, trade, financial and shipping centers), the district government has recently decided the key function of the district lies on shipping services. Apart from emphasizing its shipping service industry, the government is also endeavoring to promote Hongkou’s function in the fields of trade, commerce, culture and residence, and it has formed the overall planning of “One Zone-One Street-One Circle”. “One Zone” refers to the North Bund Shipping Service Concentration Zone, “One Street” refers to North Sichuan Road and “One Circle” refers to Dabaishu domestic service trade and innovation circle.

l          Investment Environment

1. Favorable Ecological Environment and Advanced Infrastructures

Public parks are spotted everywhere in Hongkou District, including two city-level parks—Peace Park and Lu Xun Park, as well as other middle or small sized ones, like North Sichuan Rd. Park and Quyang Park, etc. Up to the end of 2003, the green coverage in the district amounted to 336.47 square meters, with the afforesting rate reaching 16.87%. The water system in the district is quite developed and Hongkou Port is the only inland river leading to Huangpu River, with many water-merry spots along the banks.

In recent years, the district government has further improved the working plans for urban construction and management. Since 2003, it has launched the “Hundred Roads Optimization Project” and started to broaden the major roads and streets, together with efforts to improve the views along the roads. As a result, traffic congestion in the district has been greatly mitigated and road conditions have been largely improved. Meanwhile, along with the new round of urban construction, the government is also active to boost the reconstruction of the old and shabby areas. Accordingly, while people’s residential conditions are improving, the quality of the overall urban environment in the district is also ameliorated.

2. Convenient Transportation Network with Complete Business Facilities

With the Inner Rind Road, Middle Ring Road, Light-rail Line 3, Line 4, planned Line 4 and 10 and Dalian Rd. Tunnel, transportation in Hongkou District is quite convenient. The Hongkou Football Stadium Transportation Hub under construction will become the largest transferring center for subways and public buses in the northeast part of Shanghai.

In the past few years, the investment structure has been constantly upgraded. With government’s support to the investment of office buildings, the business facilities in the district have been continuously improving. The emerging office building economy has become a fresh force to attract investment from home and abroad. In three to five years, a number of office buildings and hotels will be completed in the North Bund, which will provide a favorable business environment for the development of the shipping service industry.

3. Wholesome Functional Organizations and Innovated Service System

In order to invite more high-quality companies to develop their business in Hongkou District, the district government and other related departments have been actively transforming their governmental functions. An Investment Service Center has been established to facilitate the examination and approval procedure. Through establishing key company green paths and comprehensive information platform, setting service hotlines and paying regular visits to companies, government departments provide manifold services to companies, including policy consultation, financing guaranty and other functional services.

4. Special Shipping Service Organization and Concentration of Shipping Related Associations

For the purpose of promoting the development of the shipping service industry in Hongkou District, the district government has formed “Hongkou District Shipping Service Development Office” which is responsible for the study of shipping polices and industrial planning, the examination of shipping-related enterprises in the district and the investment attraction work in the shipping service field. Hongkou District has also gathered together a large group of shipping-related functional organizations and associations, including: Shanghai Shipping Exchange, Shanghai Maritime Safety Administration, Shanghai Ports Associations Shanghai Ship Owner Association, Shanghai International Freight Forwarders’ Association, Shanghai Customs Declaration Association, Shanghai Warehousing Association, and Shanghai Branch of China Maritime Arbitration Commission. These organizations and associations are indispensable elements to construct a favorable development platform for the North Bund shipping service industry.

l          Preferential Policies

1. For Ordinary Enterprises:

For newly established enterprises registered in Hongkou District, in the aspect of company income tax, based on the sum the district government actually gets, the government will give enterprises full sum subsidies for the first three years and 50% subsidies for the next two years. In the aspect of business tax and value added tax, according to the sum the district government actually gets, the government will grant subsidies from 15% to 35% respectively.

2. For Shipping Service Enterprises:

For newly established shipping service enterprises registered in Hongkou District, in the aspect of company income tax, based on the sum the district government actually gets, the government will give enterprises full sum subsidies for the first three years and 50% subsidies for the next two years. In the aspect of business tax and value added tax, according to the exceeded sum than the year before, the government will grant subsidies from 45% to 55% respectively.

3. Knowledge Service Enterprises

For newly established knowledge service enterprises registered in Hongkou District, in the aspect of company income tax, based on the sum the district government actually gets, the government will give enterprises full sum subsidies for the first three years. In the aspect of business tax, according to the exceeded sum than the year before, the government will grant subsidies from 45% to 55% respectively.

l          Representative Foreign Invested Companies

The economic development of Hongkou District has attracted many foreign companies to invest in Hongkou, including ACE Group from Japan, Ganso Food from Taiwan and some international shipping and logistics giants such as UTI, BAX (GLOBAL), P&O NEDLLOYD and so on. Among them, Hongkou District has earned several Firsts in Shanghai’s foreign investment field:

Ø         The 1^st Foreign Invested Hospital in Shanghai:

Shanghai Pacific Dental Hospital

Ø         The 1^st Foreign Invested Travel Agency in Shanghai:

Star Cruise Travel Agency (Shanghai) Co., Ltd.

Ø         The 1^st Sino-foreign Cooperative Educational Training School in Shanghai:

Alliance Française de Shanghai

Ø         The 1^st Sino-foreign Cooperative Third-party Cold Logistics Company in Shanghai:

Shanghai Xintiantian Dazhong Cold Logistics Co., Ltd.

Ø         The 1^st Hong Kong Invested Commercial Retailing Company under the Framework of CEPA in Shanghai:

New World Department Store (China) Co., Ltd.

l          Project for Investment

Project Name: The Land-lot in the North Side of International Passenger Center in the North Bund

Project Introduction: As a key project of the “Comprehensive Development of Huangpu River Banks” project, the Land-lot in the North Side of International Passenger Center in the North Bund is one of the first nine modern service concentration areas put into construction in Shanghai. The construction is planned to start in 2006. When completed, it will become the commanding point and symbol of the North Bund. Sitting in the north and facing the south, the land-lot is a rectangle lot bounded by Dongchangzhi Rd., Xinjian Rd., Dongdaming Rd. and Lvshun Rd. With a planned area of 62,211 square meters, it is the largest available land in the central city of Shanghai. Its major function will be: along with the comprehensive development of the North Bund, business offices as the core, supplemented by high-star hotels, catering, recreational and commercial facilities.

Project Description:

 Planned Construction Area: 62,211㎡ (including 5500㎡’s greenbelt under which is the 220V underground transformer station)

 Total Floor Area: ≤250,000㎡

 Height of the Main Building: ≤260m

 Building Density: ≤50%

 Afforesting Rate: ≥30%

Matching Facilities:

1. International Passenger Center and surrounding mature shipping business environment and gathered shipping elements;

  2. Three-dimensional transportation network, including underground passage, cross-river tunnel, rail traffic and interwoven roads and streets;

  3. 3-5 floors of planned underground space, including underground shopping mall, transferring station for buses and taxis, commercial facilities and parking lot, etc.;

  4. Ecological sceneries, with 50,000㎡’s green area in the south directly reaching Huangpu River.

Investment Methods: Open to investors from home and abroad, inviting public biddings.

Dept. in Charge: Shanghai Municipal Hongkou District Foreign Economic Relation Commission

Contact Ways:  Tel: 021-25658888

                             Fax: 021-25657990

l          Service System

Hongkou District Foreign Economic Relation Commission and Hongkou Enterprise Registration Center shall adhere to the principle “One-stop Case Accepting, Copying to and Informing the Related, Combined Examination and Approval, and Procedure Completion in Time”, normalize administrative charges and simplify examination and approval procedures. By transforming administrative examination and approval procedure to administrative services, they are determined to provide investors with efficient and high-quality services.

Administration Organization: Shanghai Municipal Hongkou District Foreign Economic Relation Commission

Tel: 021-25658888

Fax: 021-25657990

Application Procedure in Hongkou Enterprise Registration Center (Download)

l          Contact Ways

Governor: Yu Beihua (Warden)

Vice Governor: Chi Hong (Vice Warden)

Dept. in Charge: Shanghai Municipal Hongkou District Foreign Economic Relation Commission

Address: Rm.909, 518#, Feihong Rd., Shanghai

Tel: 021-25658888 (telephone exchange)

Fax: 021-25657990