(1) Development Environment

With steady increase in the home and foreign economy, the economy in Shanghai shall maintain a stable growth. As the consumption and purchase power improved, the market potential was great. In 2006, Per Capita Annual Disposable Income of Urban Shanghai Households and Per Capita Annual Living Expenditure of Urban Shanghai Households stood at RMB 20,668 and RMB 14,762, up 10.8% and 7.2% respectively over the previous year. Therein, Living Expenditure on Service stood at RMB 4841, up 8.9% over the previous year. Demands from manufacturing service industry increased swiftly. Service industry such as the financing industry shall further accelerate their pace of opening up. The service-economy-based industrial structure shall be built up in Shanghai step by step.

(2) Development Trend

The added value for the service industry in Shanghai is predicted to reach RMB 579.535 billion in 2007, up 11.3% over 2006. Shanghai shall proactively undertake the transfer of international service industry, focus on the development of production-based, knowledge-based and foreign-oriented service industry and cultivate level differences and core competence against other areas. It is predicted that the Total Retail Sales of Consumer Goods shall increase by 11% or so and the commodity sale by 15% or so. Retail business format shall be further adjusted so as to fit in with changes and development of market requirements in different functional areas. Especially, transportation hubs shall made new progress in business development.