Shanghai earmarks 10bn yuan for facelift that includes 'mini Hong Kong'
Construction spree part of efforts to create mini-HK in free-trade zone that will include a complex of office blocks and shopping centres
Shanghai has earmarked an initial investment of 10 billion yuan (HK$12.4 billion) for the facelift of Lingang New City, which is connected to the Yangshan deep-water port, as the city seeks to create a mini-Hong Kong amid the development of its free-trade zone.
The construction spree at Lingang represents a renewed effort by Shanghai to build a free-trade zone with substance despite suspicions and criticism surrounding the test bed for economic reform since its launch in September last year.
"There will eventually be a huge amount of investment in Lingang," said a Pudong government official, who asked not to be identified. "City officials want to make sure the free-trade zone will be a success, with a focus on Lingang."
Officials want to make sure the free-trade zone will be a success, with a focus on Lingang
State-owned developer Shanghai Lujiazui Group plans to build a commercial complex of office buildings, entertainment facilities, exhibition halls and shopping centres covering up to 500,000 sq metres in Lingang.
According to the media, city officials envision Lingang as an upgraded version of Lujiazui, which is at the heart of Pudong and is dubbed as China's Wall Street.
Beijing endorsed the blueprint for the mainland's first free-trade zone in Pudong last year, hoping to create an investment magnet to attract foreign capital and talent.
The 28.78 sq km zone was designed to conduct further financial liberalisations on a trial basis, such as the introduction of a market-based interest rate mechanism and full convertibility of the yuan.
However, the financial authorities have yet to publish detailed operating guidelines for the much-anticipated reforms, and foreign business interest in the zone has been lukewarm at best.