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Home -> How to Invest in Industrial Park -> The Reasons to Invest in Shanghai
Why International Companies Locate Business in Shanghai
It's really good investment opportunities for you to expand your business in the hot area, since China keeps strong economic growth in the last 10 years.
Invest Shanghai Fengpu, grasp the business expanding investment opportunity, share your huge potential market here.
Here's 12 reasons why those international companies locate their business in Shanghai. You can’t miss this good investment opportunities!
- With its GDP averaging 9.5% since 1978, China has the fastest growing economy in the world.
- Shanghai is the fastest growing city in the world, attracting large amounts of foreign investment every year. Capital growth has increased from 15% in 2002, to 25.5% in 2003. In 2004 it stabilized at 19%.
- China is tipped to be the big economic story of the 21st century and Shanghai, along with its property market, will be at the centre of it all. With property prices still a fraction of other world financial cities such as Tokyo, New York and Hong Kong, large capital growth should easily be attainable in the medium term. In fact, we believe that Shanghai is one of the most dynamic and growth-guaranteed markets of the emerging regions.
- Shanghai is becoming an increasingly cosmopolitan city and due to the strength of the economy there is a large and increasing amount of local wealth. Large and exclusive department stores and Gucci, Prada and Armani boutiques line the streets next to Rolls Royce and Ferrari showrooms. Western multinationals have already marked their presence such as Starbucks, Ikea and B&Q.
- Shanghai will receive worldwide attention when it hosts parts of the Olympics in 2008. the World Expo in 2010 and Disney and Universal Studios open in the city. Some of you may have also noticed the famous brand new race track which hosts the Chinese Formula One Grand Prix every year.
- The Chinese currency - the RMB is currently stated to be undervalued (by up to 40%) and is currently pegged to the US Dollar. It is expected that the RMB will be de-pegged in the next few months which should revalue the RMB at a much higher rate meaning that investing in property in Shanghai should be extremely lucrative.
- Friendly, educated and well-mannered, the Chinese are very welcoming to foreigners.
- Shanghai is a very safe city with an extremely low crime rate by Western standards and build quality and furnishings is all built to high Western standards.
- Shanghai is the "gateway to china" and Chinese government encourages foreign investment.
- Residential real estate is viewed by authorities as a "key investment goal".
- Increase in population from native and foreign inflow creates a demand for residential property that outstrips the supply, keeping prices rising.
- Large international corporations such as CitiBank and Philips are relocating their Asia-Pacific headquarters from Hong Kong to Shanghai.
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