Shanghai just concluded a grand contract-signing ceremony, which included a number of high-profile foreign investment projects worth $7.12 billion. The event was hailed as part of China's continued pursuit in providing favorable investment policies that will fuel the country's future growth.
During the contract-signing ceremony, a total of 38 projects were inked. These projects were funded by various foreign companies and included big undertakings in sectors such as finance, retail, and manufacturing.
One of the biggest deals that were signed during the event was a $1.45 billion investment from Allianz Group to form the country's first foreign-funded insurer.
This was followed by a $115 million registered capital invested by JPMorgan Chase to establish the country's first brokerage with majorly foreign ownership.
According to the Shanghai Municipal Commission of Commerce, the newly inked deals should help the city retain its position as the premier destination for foreign investment in China. Shanghai has apparently seen a big boom in foreign investments and it is now continually attracting foreign capital.
The agency also reported that the number of newly-established projects in the city, funded by foreign firms, has jumped by as much as 52.3 percent in 2019. Since the start of the year, the number of foreign-funded projects has reached 2,051 with an estimated value of over $17.6 billion. This was a 21.3 percent jump when compared to the same period last year.
The removal and easement on the restrictions involving foreign ownership in China, companies from all over the globe have started to make substantial investments in the country. As of last month, Shanghai has become the home to 683 regional headquarters for multinational companies. It also boasts around 45 Asia-Pacific headquarters and around 447 research and development centers.
Around the same time as the event, pharmaceutical giant Pfizer Inc inaugurated the global headquarters for its subsidiary Pfizer Upjohn in Shanghai. According to Pfizer Upjohn President Michael Goettler, Shanghai has become a strategic location for the company.
Establishing a foothold within the city will apparently allow the company to take advantage of the emerging markets and for the firm to be closer to their customers and patients.
Pfizer apparently believes that China will become a key market in the pharmaceutical sector, helping companies improve their products and services' accessibility and pricing. Commenting on the process of establishing its headquarters, Goettler stated that the government has been very welcoming and supportive of its endeavor. Administrate processes have reportedly been very simple and streamlined.
