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Shanghai
Shanghai is awash in
With around 49,000 registered foreign but, as Kevin Chan put it: ‘While Shanghai is the
construction projects.
companies operating within the city, Shanghai place to be in China for financial organisations, it
.com/Nikada
is a very business-minded city with strong is also good to have a foothold in Beijing.’
kphoto
iStoc international connections. As Jonathan Reardon
One factor is rental costs. Commercial rental
says: ‘It is open, approachable and a place where prices have dropped considerably, around 30
it is easy to arrange things. It sees its future in to 40 per cent, over the past 12 months – an
business and a company with the right product improving situation for any business setting up.
can still find a niche here.’ House prices, similarly, are not skyrocketing as
For western companies coming new into the before. But companies that see the downturn
China market, locating in Shanghai can be very as relatively short in China are still moving
attractive, depending on their type of business. into the Lujiazui Financial District – successful
International legal companies, for example, may domestic companies need a prestigious
open only two offices in China and naturally location, while internationals viewing China,
tend towards Shanghai and Beijing. ‘As a financial with its more managed economy, as a country
services company, Shanghai seemed the most not so economically harmed, also want prime
appropriate place, being the main financial locations.
Kong professionals transferring their skills, but centre in China,’ says Tim Mathieson. ‘Also, it was
also a growing resource of well-educated local where our JV partner had its base. Nonetheless, expo 2010 offerS a ShowcaSe
talent as the city’s universities increasingly many of our customers are based in Beijing and Increasingly representing the face of contemporary
design courses towards this need. The work force we have our second-largest office there.’ China, Shanghai will next year become the country’s
is youthful and dynamic but short on experience; Similarly, when Grant Thornton International showcase to the world when it hosts Expo 2010.
something that will work through with time. decided to expand into mainland China, Shanghai The largest world fair ever held and running for
Tim Mathieson sees a growing demand for appeared as the ideal location for a company six months, it hopes to attract 70 million visitors
financial industry support services ‘including dealing in corporate finance and jurisprudence – including 3.5 million from overseas.
accountants, specialist lawyers, loss adjustors,
and specialist consultancy companies. As the
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main industry segments grow, so will the need
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Recruitment drives have been launched to
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attract redundant western professionals and, to
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this end, relatively low-cost serviced apartments
are being constructed in Pudong.
Kevin Chan, manager of Specialist Advisory
Services for Grant Thornton China, similarly
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sees long-term opportunities for overseas
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companies: ‘As China becomes more modern
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and embraces infrastructure changes, so there ���������������
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will be a greater demand for higher standards
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and more enforcement of the rules, creating huge
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opportunities to bring in professionalism.’ Working ��������
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with foreign companies setting up in China and
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domestic companies wishing to go overseas, he ���� ��������
sees the business scene today increasingly well-
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organised and more formalised. �������������
In May 2009 the UK Chancellor Alistair
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Darling and his Chinese counterpart vice-
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premier Wang Qishan, China’s lead economic
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policy-maker, signed a deal to start opening up
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the country’s stock markets and remove the
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barriers preventing UK companies from listing in ���������
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Shanghai. This could allow HSBC, presently a lead
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player in the city’s financial scene, to become the
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first British company to list in mainland China.
Wang said China would move swiftly to change












the rules so that foreign companies can tap into �����������������
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the bustling local investment market.
22 pathfinder buSineSS l JUNE/JULY 2009
PBS12 pp20-25 Shanghai.indd 26 5/6/09 15:27:10
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