Shanghai's Hongkou district remains a key hub for foreign enterprises — with its real foreign investment increasing by 35.76 percent year-on-year in 2024, representing the highest growth rate in the city's districts.

From January to February in the current year, its real foreign investment rose by a hefty 22.5 percent year-on-year, reinforcing its appeal to multinational corporations.

Hongkou is now home to nearly 2,000 foreign-funded companies from 75 countries and regions, contributing close to a quarter of regional economy.

Abu Dhabi-based Borouge Plc, a leading petrochemicals company, located its North Asia regional headquarters in the district on March 25.

Recent additions also include MOL (China) Co Ltd, the East Asia regional headquarters of Japanese shipping giant Mitsui O.S.K. Lines Ltd.

Last year, the district welcomed around 100 key businesses funded by foreign companies. These included German corporation Hellmann, a large logistics provider, alongside 20 headquarters of companies like Switzerland-based SoftwareOne, a software portfolio management and software licensing business.

With a mix of strategic location, policy support and cultural inclusivity, Hongkou is continuing to strengthen its position as one of Shanghai's most attractive destinations for foreign investment, setting a benchmark for business-friendly development in the region.

Primary location, business developments

The district's advantageous location at the confluence of the Huangpu River and the Suzhou Creek has positioned the North Bund as a center for the financial, shipping and sci-tech sectors.

What's more, high-end office buildings — including the Sinar Mas Plaza and Raffles City the Bund — have attracted major foreign investments.

The Kraft Heinz Company, a large food and beverage company based in the US, relocated its Asia regional headquarters to Hongkou in 2021. It was recognized as a multinational (Asia) regional headquarters by the Shanghai Municipal Commission of Commerce in 2022.

Germany's Messe Düsseldorf GmbH, a major exhibition organizer, moved its wholly owned subsidiary — Messe Düsseldorf (Shanghai) Co Ltd — to the Sinar Mas Plaza, also known as the White Magnolia Plaza, in 2021.

Pro-business policies, enhanced services

Hongkou's commitment to improving its business environment has been a driving force for foreign investment attraction.

In 2022, it took the lead in introducing a district-level initiative supporting the regional headquarters of multinationals, followed by a three-year action plan for quality and capacity improvement of foreign-funded headquarters in 2024.

Its recently released action plan 8.0 for the optimization of the business environment is continuing to refine foreign-related services — providing fast-track channels for talent recruitment, streamlined administrative processes and policy incentives.

As a result, 16 enterprises have been upgraded to the status of municipal-level headquarters of multinationals since 2022, including Kraft Heinz.

Ivan Lu, Kraft Heinz's general counsel and vice-president of government affairs in Asia emphasized the district's shift from "policy approvals" to "policy services", highlighting its one-stop services approach.

Talent ecosystem, cultural integration

To attract global talent, Hongkou launched the Three-Year Action Plan for the Introduction of International Top Talent (2024-2026), offering residency benefits, housing subsidies and school-enterprise partnerships.

It also pioneered Shanghai's first "overseas talent station" and expanded internship opportunities for global students.

Kraft Heinz, with support from the Hongkou District Talent Development Service Center, partnered with Fudan University in a talent recruitment drive last year, while its new hires are benefiting from housing subsidies under Hongkou's "talent station" policy.

What's more, Hongkou's deep-rooted cultural connections are said to further attract foreign enterprises. Lorenzo Riccardi, president of the China-Italy Chamber of Commerce, noted that the district has historically been a hub for Italian entrepreneurs and remains a key center for Italian business in China.

Similarly, SoftwareOne — drawn to the district's cultural heritage — has established its regional headquarters in the district.

Additionally, the Hongkou District Foreign-Invested Enterprises Association has cemented close links with businesses through investment roundtables, industry forums and networking events — fostering collaboration and the sharing of resources.

Sources: Hongkou district government, Jiefang Daily