Hong Kong is working hard to become an important partner of Jing'an District by building a major commercial and business area and a modern residential area.
A 40-member delegation, headed by Chen Zhenhong, Party secretary of the district government, promoted the business last month at the Hong Kong Convention and Exhibition Center.
The promotion targeted the modern service sector, which is also the major industry of the 7.62-square-kilometer downtown district.
Two contracts were signed in Hong Kong.
DVNS (Holdings) Ltd will invest US$10 million to develop the set-top box as it believes there is huge potential in Shanghai's digital TV market.
The company predicts the number of users of digital TV on the mainland will increase from 10 million to 30 million over the next year.
Shanghai Xingzhong Accounting Firm also signed an agreement with KGI Capital Asia Ltd.
The delegation bought nine business buildings with a total area of 350,000 square meters.
There will be five service agencies in property evaluation, law service and accounting in the 17 commercial spaces available for lease on Nanjing Road W.
"The Plaza 66, the Citic Plaza and the Westgate Mall on the Nanjing Road W all have Hong Kong investment and make a "golden triangle" area where high-grade shopping malls are concentrated," said Chen.
In addition to the international shopping center designed for the area, the Jing'an government also has plans for the rest of Nanjing Road W.
A cultural, media and entertainment center will be built around the Shanghai TV Station near Chengdu Road.
From Xikang Road to Changde Road there will be an area with hotels and exhibition places.
The area around the Jing'an Temple will have some traditional stores and restaurants.
The section between Wulumuqi Road and Zhenning Road will mainly be department stores and entertainment facilities.
It's hoped the Hong Kong investment at the Concord Plaza will create landmark architecture.
The revenue from the district's modern service sector will contribute to about 40 percent of the project.
Last year, the revenue from the service sector was 460 million yuan (US$55.42 million).
Jing'an is expected to develop into one of the international business centers in the city.
To achieve this, the district government plans to build 2 million square meters of office buildings near the Nanjing Road area, making the total area about 4 million square meters over the next five years.
So far there are 230 office buildings in the district, including 38 with overseas investment.
A number of law firms, accounting firms and advertising companies have been attracted to the offices.
The second phase of Plaza 66 will cost 1 billion yuan.
It's expected to be completed by the end of 2006 and will provide 82,000 square meters of offices.
The KPMG group has decided to establish its headquarters of KPMG Enterprise Consulting (China) Co Ltd in the district, in addition to moving into Plaza 66.
"We imagine that all kinds of investors will be attracted to Jing'an because of its ideal investment environment," said Louie Choi, a Hong Kong partner of a firm which is part of the promotion.
"I believe the district will soon become a fantastic business and commercial area."