Shanghai’s Xuhui district entices Hong Kong businesses with subsidies, offers 12 plots of land to Hong Kong developers

The central Shanghai district of Xuhui is campaigning to lure Hong Kong businesses and professionals with up to 17 million yuan (US$2.5 million) in subsidies while also offering Hong Kong builders the chance to develop about 2 million square metres of land.

The local government of Xuhui, the heart of China’s financial hub, is offering qualified Hong Kong enterprises that establish their headquarters there up to 5 million yuan in launching subsidies as well as 12 million yuan in office leasing allowances. At the same time, the district is inviting Hong Kong developers to bid on 12 plots of land in the district for both commercial and residential use.

“Hong Kong and Xuhui have a long history, and enterprises from Hong Kong have witnessed and been intensively involved in the development of Xuhui in the past 30 years,” said Xuhui Party secretary Cao Liqiang during an investment promotion briefing in Hong Kong on Friday. Total investment by Hong Kong firms in Xuhui exceeds US$25 billion, he added.

“We are hoping to move forward in our collaborations with Hong Kong, leveraging advantages of both sides, and see how Xuhui can help Hong Kong’s economy and companies to grow.”

Hong Kong professionals working in specific industries who relocate to Xuhui will be welcomed with favourable policies, such as monthly rental subsidies of 1,000 to 2,000 yuan, medical arrangements and a green pass for easier travelling between Hong Kong and Shanghai, Wei Lan, director of investment promotion for the district, told The Post on the sidelines of the meeting.

The favoured industries include digital economy, life and health, cultural innovation, modern finance, low-carbon energy and intelligent vehicles.