Where is the best choice for global investment? The heads of many foreign institutions: Shanghai!
Author Ye Wei

This article is firstly posted on Xinmin Evening Newspaper,all copyrights belongs to the original author.
To read the Chinese version, please click
http://newsxmwb.xinmin.cn/jha/2019/04/22/31519060.html

Recently, the heads of many foreign-funded enterprises have used one word when they mentioned a place: I did not expect it.

The city that made them unexpected is Shanghai.

Shanghai is already one of the top choices for global investment.

So, what is the reason for them to have such feelings?

1 "I didn't expect Shanghai to develop so fast"

One of the person who said "unexpectedly" is the executive chairman as well as Chinese committee chairman of Nomura Holdings Asia (except Japan) -----Toshiyasu Iiyama.

On March 29 this year, Nomura Oriental International Securities Co., Ltd. was approved  according to law. This brokerage is the first foreign-controlled brokerage firm to submit applications and is the first approved in the country. The controlling shareholder, Nomura Holdings from Japan, holds 51% of the shares.

"I came to Shanghai for the first time in 1993. At that time, Shanghai then and now are not a city at all. There were many small vendors at the crowded lanes. I also squeezed in to buy steamed buns." In the view of Toshiyasu Iiyama,. The history of Nomura Group in China, is precisely the 20-year development in which Shanghai and even China's financial opening by leaps and bounds. “At that time, Nomura Group invested in the Garden Hotel in Shanghai. It was the most advanced hotel at that time. Now countless 5-star hotels have been built up. I didn’t expect Shanghai to develop so fast.” Today, Shanghai is sprinting to the global financial center, the financial market here is accelerating in opening up and becoming more and more international constantly.

Toshiyasu Iiyama was deeply impressed with the financial openness policies of China and Shanghai. “There are three areas that have inspired us a lot: allowing foreign investment, freely choosing Chinese shareholders, and foreign brokers to compete on an equal footing with local company.”

He said that the CSRC and the Shanghai Municipal Government have given the company a lot of help and support in the preparations and problems encountered by Nomura Oriental International Securities Co., Ltd. At present, Nomura is accelerating the preparations for all aspects of brokerage at full speed and has hired many local financial talents. “Talent is also a huge advantage for Shanghai as a financial center. We hope to bring the joint venture holding company to the future to train more outstanding financial talents for China.”

Last year, Shanghai formulated and implemented a new initiative for reform and opening up – “100 policies to opening up in Shanghai” and vigorously implemented it. Currently, 93 have been implemented and 7 are being promoted. Among the 100 policies, nearly one-third are new initiatives in the financial sector. Last year, there were 68 new licensed financial institutions in Shanghai, more than half of which were foreign-funded financial institutions. The frequent introduction of favorable policies has provided extremely convenient conditions for the construction of foreign-funded securities companies like Nomura and the future development.

2  "I didn't expect the $20,000 consulting fee to be spent."

There is an ordinary gray small building on Fute West Road, and the signboard on the main road 50 meters away reads “Shanghai TOWAKO Hospital”. This is the 17th chain medical institution opened by the Japan TOWAKO Group and the first foreign-owned hospital in China.

The "unexpected" belonging to it sounds more interesting.

In 2013, the China (Shanghai) Pilot Free Trade Zone was formally established. The subsequent liberalization of the free trade zone service industry and the negative list of foreign investment were mentioned – allowing the establishment of a wholly foreign-owned medical institution; in July 2014, the State Council approved the 31 measures for the further expansion of the Shanghai Free Trade Zone, and the minimum investment and operating years of foreign-invested medical institutions were removed. Taking advantage of the expansion of the opening up, TOWAKO Group entered the Chinese market.

"Many people say that in China, they are most afraid of all kinds of formalities. There are more than a dozen seals for one license, but our settlement has won supports from Pudong New Area, Free Trade Zone Management Committee and Waigaoqiao Group. Fortunately, I started to apply from the end of 2014. In January 2015, I got the permission to set up a medical institution. Then I successfully completed the hospital license in the same year.” President of TOWAKO,Fan Yushen said that the entire settlement process is in line with international standards. It can be declared without prohibition, and the rules of the free trade zone are very transparent.

“Before the start of the bid, we were worried that we couldn’t handle it. We spent $20,000 asking for guidance from the consulting company to be responsible for 'public relations.' But in the actual settlement process, the bid was very smooth, and I didn’t expect the $20,000 consultation fee to be wasted.” Fan said this anecdote laughingly.

However, the $20,000 didn’t bring nothing back. Fan told reporters that at first, “I would like to build a hosiptal, apply for environmental impact assessment, fire protection and other process by myself. The process would take one or two years. As a result, the free trade zone provided one-stop government service efficiently, and also helped to pick up the site and select the site. In the end, the construction cost of the hospital was saved by 150 million yuan.”

"Japan does not allow medical institutions to advertise publicly. The location of the hospital is also far from the city center. We can only rely on customer word of mouth to obtain customers. Many patients report that the hospital is not easy to find. The free trade zone has strict regulations on city appearance management. It is not easy to set up a unique signboard. For this problem, 13 departments of the Free Trade Zone have specially coordinated and resolved, and set up a guide sign on the main road. Now, our hospital is conspicuous and geographically located, and patients are easy to find."

According to reports, Shanghai TOWAKO hospital is still expanding: a new research center, endoscopy center and ward area will be added, and technical exchanges with other medical institutions will be considered in the future. The total area will be increased by 40% after completed. Fan revealed that he will actively participate in this year's CIIE, to show Japan's advanced medical technology, and communicate extensively with domestic medical institutions. He is looking forward to exhibiting with partners in China, and is looking forward to cooperating with Chinese exhibitors.

3 "I didn't expect to get the approval letter in less than a week"

“I heard that the media would come”, the Swiss Felix Horah temporarily changed his itinerary and flew directly to Shanghai. He rushed to IfFP Professional Skills Training Co., Ltd., located at No. 1599, Xinjinqiao Road, Pudong. He is the principal of Swiss Institute for Financial Planning, which is the investor of this company.  

Felix also had "unexpected" for the application process of IfFP Professional Skills Training.

“We value China's opportunities, we want to establish a Swiss-style professional skills training system, and cultivate a group of financial planners. China's wealth management market is huge, and we hope that Swiss genes and leading concepts can be combined with Chinese domestic resources. Education contributes a power to the employees in China's financial sector. " Felix said. Previously, due to regulations and other reasons, it was difficult for foreign capital to enter the Chinese financial training field. The Shanghai Free Trade Zone took the lead in reform and breakthroughs. Foreign business can set up non-academic vocational skills training in a sole proprietorship. Felix’s bidding plan can take root in the free trade zone.

"From submitting the materials to getting the approvals, it didn't come down in a week. Instead, we didn't expect to be so fast, not prepared enough, it took more time from getting the approval to the opening." IfFP Professional Skills Training Co., Ltd. Manager Zhong Ke introduced that in January 2018, the company filed for foreign investment filing, industrial and commercial registration and human resources bureau, and obtained the construction permit. In September of that year, the company completed the preparatory establishment and obtained the business license. The communication with the vocational training department, the industrial and commercial department, and the security department is closely linked. The choice of office accommodation and the visits of the partners are one after another. Now it has successfully taken root in Jinqiao and started training enrollment. The process is less than a year.

4 And the "unexpected" wonderful performances

Perhaps, Shanghai still has a lot of things that make foreign investors "unexpected". But we can be sure that such wonderful stories will be staged one after another.

Relying on reforms, walking to the road of opening up, and promoting innnovations, Shanghai is already one of the first choices for global investment. The data shows that there are more than 50,000 foreign-funded enterprises in Shanghai, including 677 multinational corporations and 444 foreign-funded R&D centers. It is the city with the largest number of foreign-invested headquarters organizations in China. Foreign-funded enterprises contribute 20% of the city's employment, 27% of GDP, 33% of taxes, 60% of industrial output value and 65% of imports and exports by the number of enterprises accounting for 2% of the city's total companies.

From the first bonded area in the country to the first free trade pilot zone, from the first land lease to the first foreign investment access negative list, in the trade and investment liberalization facilitation, financial open innovation, etc., Shanghai has achieved a large number of pioneering and important results. New ways have been explored for the comprehensive expansion in China, and new experiences have been accumulated. In the new round of reform and opening up, Shanghai explores the road first, accelerates the establishment of a new open economic system, and strives to become a new round of a new highland and a global gateway to the global resources.

Relying on the construction of the Pilot Free Trade Zone, the country's first wholly foreign-owned hospital, wholly foreign-owned financial investment company, foreign reinsurance brokerage company, foreign-owned non-academic vocational training institution, foreign-invested import and export commodity certification company, foreign-funded professional health insurance institution, etc. A number of pioneering projects were established in Shanghai.

I believe that in the future, such foreign investment projects will be more and more, larger and stronger.