Bustling scenes on the Bund area in Shanghai on January 16. Photo: VCG

Shanghai’s GDP has expanded by 5 percent year-on-year in 2023 and saw the actual use of foreign capital hit record high as the city remained the top choice for multinational enterprises, Shanghai mayor Gong Zheng announced in the city’s government work report on Tuesday.

Over the past year, Shanghai’s economic and social development remained stable and is progressing well. The city's GDP hit 4.72 trillion yuan ($660.45 billion) in 2023, a year-on-year growth of 5 percent. It sets the economic growth target at around 5 percent for 2024.

Among the highlights, Shanghai’s actual use of foreign capital has hit a record high to $24 billion. The report also shows that Shanghai remains the top choice for multinational companies' investments. Last year, Shanghai saw an increase of 65 regional headquarters and 30 foreign-funded research and development centers, bringing the total to 956 and 561 respectively.

New growth drivers and strategic emerging industries have developed steadily. The scale of three leading industries of integrated circuits, biopharmaceuticals, and artificial intelligence reached 1.6 trillion yuan. The number of new-energy vehicles in Shanghai has reached 1.288 million, ranking first among global cities.
The number of high-tech enterprises in Shanghai now exceeds 24,000.

For 2024, Shanghai has set the GDP growth target at around 5 percent, actively promoting new industrialization and continuing financial opening-up and pushing forward Pudong New Area's pilot comprehensive reform.

Shanghai will renew efforts to enhance high-end industrial clusters such as new-energy vehicles, high-end equipment and advanced materials. It will also launch a pilot program for internet connected vehicle access and on-road operation, taking the lead nationally.

For the financial sector, Shanghai aims to attract high-level financial institutions and long-term capital to Shanghai, deepen cross-border cooperation, and enhance the yuan cross-border payment systems.

The report also highlights the effort to carry out a series of trials and new regulations and enhance the international talent attractions for Pudong New Area. Significant projects such as the Shanghai East Railway Station and the fourth phase of the Shanghai Pudong International Airport will be moved ahead as scheduled.

China has unveiled a comprehensive reform plan for Pudong New Area, with a focus on the financial market and technology development.

The plan, with a 2023-2027 timeframe, aims to support the high-level reform and opening-up of Pudong New Area, as well as efforts to build Pudong into a leading area for socialist modernization.

The plan outlines a strategy to promote financial support for technological innovation, and addresses the need to ease capital market listings and financing for technology enterprises, with new options and futures products such as shipping index launches under consideration.

Global Times