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Shanghai basked in the glow of China's new leadership yesterday with so many of its former officials now entrenched in the top reaches of government.

Three of the seven members of the new Politburo Standing Committee are former Shanghai officials: Wu Bangguo, Zeng Qinghong and Huang Ju.

'With three Standing Committee members from Shanghai, Shanghai will enjoy favourable policies because the city is their base,' a local journalist said.

Chen Liangyu, the city's current party secretary and mayor, also became a member of the 21-member Politburo.

Chen Chunliang, vice-president of wood product maker Xin Gao Chao Group, said: 'Shanghai is a remarkable place producing outstanding people. When someone is on a big stage, they have more opportunity to show their ability.'

Shanghai propaganda authorities have already warned local media not to gloat over the victory.

President Jiang Zemin, who has just stepped down as the party secretary, and outgoing Premier Zhu Rongji both served in Shanghai.

New Standing Committee member Mr Wu came up through Shanghai, serving as the city's party secretary after Mr Zhu.

Mr Zeng, considered to be Mr Jiang's right-hand man, was a deputy party chief in Shanghai from 1986 to 1989.

Mr Huang is the latest in a long line of former Shanghai officials to vault to the central government. He had just stepped down as the city's party secretary after serving for eight years and was mayor from 1991 to 1995.

The 64-year-old Mr Huang never achieved the popularity among the common people as his successor as mayor, former professor Xu Kuangdi.

He has a reputation for toeing the political line and keeping his seniors happy.

'He's a flatterer,' a white-collar worker said.

But Mr Huang can claim much of the credit for developing Shanghai into the mainland's commercial hub.

'Shanghai performed well while he was mayor and party secretary, so he has proven himself,' said a foreign business executive based in the city.

The strength of the so-called 'Shanghai faction' has caused resentment among other provinces, which feel the city receives favoured treatment.

'Shanghai has stopped being just a place name. It has become synonymous with local favouritism,' a resident said.

Mr Jiang told the Shanghai delegation to the party congress that the central government would back the city as the nation's economic, financial, trade and transport centre.

But Shanghai must aid the development of the surrounding Yangtze River Delta area and poor western provinces, he said.

Many Shanghai residents say they care little about politics as long as the government keeps the economy growing.  But private companies, which make up one-third of Shanghai's economy, hailed the congress because it granted them greater recognition and political protection.

'I am very happy. This is a big change. The private economy will develop together with the state economy,' said Zhang Jian, general manager of JASO Construction Group.

A laid-off state worker, now scratching a living running a small food stand, said he hoped the party meeting would help the economy.

'I really hope the party congress will bring some changes to my life,' he said.



The Shanghai faction consolidates its grip on power