Shanghai experienced a surge in new business registrations in the beginning of 2026, with 23,346 enterprises established by Jan 25, marking a 20.2 percent year-on-year increase.

The total number of enterprises in the city had exceeded 3 million, reflecting Shanghai's strong appeal to investors and entrepreneurs. This is equivalent to 120.98 enterprises per 1,000 residents, or one business founder in every 8.3 people.

Among the new firms, 78 have registered capital of over 100 million yuan ($14.42 million), covering sectors including finance, capital market services, technology promotion and application, software and information technology, and new energy.

The total registered capital of these new companies reached 58.91 billion yuan, with an average capital of 2.65 million yuan per enterprise.

Foreign investment also saw an uptick. By Jan 25, 500 new foreign-invested enterprises had been established, a 16.3 percent year-on-year increase. Major investors came from countries such as the United States, Singapore, South Korea, Canada, Japan, Australia, the United Kingdom, and Germany.

The city's strategic emphasis on emerging industries is reflected in the rapid growth of science research and technology service companies. During the same period, Shanghai had registered 7,753 new enterprises in this sector, up 40.9 percent year-on-year.

Government initiatives are helping attract firms in strategic emerging industries such as brain-computer interfaces. Among them is Shanghai Shanghai Weinao Zhilian Technology.

Liu Baiwei, head of finance of the brain-computer interface company, said it aims to narrow the gap with foreign leading programs by leveraging Shanghai's strengths in the industrial chain, such as clinical research and application of high-end medical devices.

Shanghai's robust industrial ecosystem in pioneering industries is often compared to a "rainforest" by many new companies, offering full lifecycle services for market entities.

Li Hui, founder of Shanghai Yuansheng Xinchuang Technology, characterized Shanghai as a city that perfectly combines a professional foundation for music engineering with enthusiasm for digital innovation, and provides the perfect ground for the company to break Europe's monopoly on chips for digital musical instruments.

Xu Xinmei, CEO of Shanghai Rain Casting Information Technology, explained her decision to start pet robot business in Minhang district, saying, "Shanghai is full of talent, not only because of its strong industry and many leading companies, but also because people choose to stay."

Source: Jiefang Daily