Rachel Hou/Shanghai Daily news

Shanghai Party chief Xi Jinping yesterday encouraged Morgan Stanley to expand its business in Shanghai during a meeting with its Chief Executive Officer and Chairman of the Board John J. Mack.

Xi said Shanghai welcomed the financial services firm and asked it to increase its investment and join the city's efforts to become an international financial center.

He said Shanghai faced both opportunities and challenges during its development. It will further implement its policy of opening up to the world and make more efforts to attract financial specialists and foreign investors.

Mack said Shanghai would surely achieve its goal of building itself into an international financial center and his company would develop closer cooperation with the city and increase its investment.

Shanghai Vice Mayor Feng Guoqin was present at the meeting.