Major private firms move to Shanghai
( 2003-08-03 11:04) (Xinhua)
More and more large private companies are moving into Shanghai to look for greater opportunities in the country's largest metropolis and financial center.
So far, 32 private companies each with a registered capital of at least 100 million yuan (US$12 million) have relocated their headquarters in the city from other parts of the country, according to the city government.
Zhao Fengjun, with the Research Center on China's Economy of Fudan University, attributed the trend to the changing needs of private firms when they grow larger.
The majority of Chinese private companies come from small cities, where local governments adopt more flexible policies to encourage the private sector, but they need larger space for further development when they grow, Zhao said.
Shanghai is an ideal place for such growth, he added.
Economists believe an increasing number of private companies will come to Shanghai as the city government is working to reduce the business cost in the municipality for a better business environment.
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