At the Investment Promotion Conference for Jing’an District of the 5th China International Import Expo (CIIE), Jing’an District once again stood in the center of the world stage and Jing’an CBD became the focus of attention.
The 20th National Congress of the Communist Party of China (CPC) was successfully held, and now the 5th CIIE is upon us. In such an important historical period, Jing’an District has actively explored a new chapter of high-quality economic growth. At the 4th CIIE last year, we released the “West Nanjing Road International Competitiveness Index”, which fully showcased West Nanjing Road as the iconic symbol of Jing’an’s economy, and the report was highly well-received. At the 5th CIIE, Jing’an District took advantage of the momentum and made another stride. Together with Jones Lang LaSalle (JLL), one of the five world-renowned real estate consulting agencies, they released Meeting Jing’an: World-class CBD from a New Perspective. In the report, we presented the areas with the most distinctive industries, premium resources, and superior carriers in the district, so the world may see Jing’an from a broader, more holistic and more vivid perspective.
I. The development charm of the District drives the formation of Jing’an CBD, and its overall strength promotes the district to become a world-class CBD
Core idea: A key factor in driving Shanghai to enter the top cities worldwide lies in the exploration of the development model for entering the world’s top CBDs. Jing’an District is endowed with core factors such as economic strength, resource endowment and central location, giving it the highest possibility and the most potential to become the ideal place to become one of the world’s top CBDs. Jing’an District also, therefore, has the confidence and determination to compete with world-class CBDs.
Jing’an District experienced rapid development during the 13th Five-Year Plan period and steady operation during the 14th Five-Year Plan period. Under the leadership of the CPC Jing’an District Committee and Jing’an District People’s Government, it has continuously drawn on the experience of the world’s top CBDs and explored its path for regional high-quality development, which boosted the District’s economy. Since the 14th Five-Year Plan period, Jing’an District has witnessed strong momentum for growth. A new model of regional development is already taking shape, providing the core driving force and important support for Shanghai to enter top cities worldwide.
Its economy is taking the lead in an all-around way. Situated at the center of Shanghai, the District enjoys a superior location and strong economy, and maintains a sustained lead over the rest of the city. In 2021, the total tax revenue of Jing’an District reached RMB 84.18 billion, with a year-on-year increase of 22.7%. Jing’an also ranks first in Shanghai’s central urban area in terms of the scale and proportion of foreign tax, as well as in general public budget revenue at the District level (RMB 27.848 billion). It now has 80 100-million-yuan buildings, a historic breakthrough. Since the beginning of this year, the total tax revenue has reached RMB 60.341 billion and the general public budget revenue at District level has reached RMB 20.795 billion.
In recent years, Jing’an District has successively implemented the “Global Service Provider Program”, “Headquarters Economy Enhancement Program”, “Asia-Pacific Operation Headquarters Support Program” and “Investment Attraction Doubling Program”, attracting many industry-leading enterprises and headquarters to take Jing’an District as their first choice to enter China. At present, the “Global Service Provider Program” of Jing’an District has been included in the 2022 Annual Work Plan on Integrated Development of the Yangtze River Delta. Jing’an now has 78 global service enterprises, and the number of global service institutions in the GaWC175 Directory accounts for one-third of the city’s total. The District is home to 110 regional headquarters of multinationals, 12 of which are headquarters of trade enterprises, and 22 are headquarters of private enterprises.
The resource endowment is diverse. Jing’an District has a unique resource endowment and superior location. The north-south viaduct constitutes the main artery of Jing’an’s development that realizes resource exchange and industrial integration; Suzhou Creek flows through Jing’an from east to west, giving Jing’an unique water resources; West Nanjing Road is the pioneer for integrated regional development and the solid base for economic growth. According to last year’s “West Nanjing Road International Competitiveness Index”, West Nanjing Road remains a global leader in terms of city leadership, business district aggregation, cultural appeal, and international influence. As the “development core” of Jing’an CBD, West Nanjing Road will give full play to its catalytic role and drive the overall rise of Jing’an CBD to become a world-class CBD.
For example, Suntory, a well-known beverage enterprise in Japan, has many business sectors, including high-end imported liquor, more down-to-earth beverages and catering brands. The rich varieties in function, position and carriers of Jing’an District provide Suntory with diversified options. At present, Suntory Liquors set up an office at the land-scarce West Nanjing Road. Suntory’s beverage company is near the up-rising bay area of Suzhou Creek (Suhe Bay). In the catering sector, “Pepper Lunch” and other mid-to-low-end brands are scattered in shopping malls in Jing’an. High-end brand Sun with AQUA has recently signed a contract with the newly-upgraded CITIC Square, which is expected to open for business in 2023.
Blue Bottle Coffee from the United States is hailed as the “Apple in the Coffee Industry”. The company opened its first store in China at Suhe Bay in Jing’an District to enter the Chinese market. Since then, it has opened the Kerry Center Store at West Nanjing Road and the Zhang Garden Store, and also set up Blue Bottle Coffee Roasting Factory in Shibei Hi-Tech Park. The central location of Jing’an CBD meets the comprehensive development needs of enterprises in commerce, trade and baking factories.
The central area drives development. Relying on its central location and industrial agglomeration, Jing’an District has formed a diversified industrial space and composite industrial ecology. Jing’an CBD has an office volume of nearly 4.7 million m², which exceeds that of London’s West End (2.7 million m²), second only to Midtown Manhattan, New York.
During the 14th Five-Year Plan period, Jing’an District will vigorously implement the development strategy of “One Axis, Three Belts”, taking West Nanjing Road as the cornerstone to propel the in-depth development of industries.
Take the life and health industry, one of the six major industries in Jing’an District, for example. Biomedical enterprises clustered in Jing’an District: Five of the world’s top 10 pharmaceutical giants have factories in the district, including Pfizer and Bristol-Myers Squibb; more than one-third of the world’s top 50 pharmaceutical enterprises such as Lilly, Allergan, and Eisai have set up offices in Jing’an District. Meanwhile, domestic biomedical enterprises are also attracted. BeiGene (Shanghai) Enterprise Management Consulting Co., Ltd., which is committed to the R&D and promotion of innovative medicine, Jixing Pharmaceuticals. in the cardiovascular field, Ocumension Therapeutics (Shanghai) Co., Ltd., a domestic ophthalmic medicine platform and Everest Medicines Shanghai Branch, a pharmaceutical enterprise listed in Hong Kong Stock Exchange, have all settled in Jing’an District.
Meanwhile, in the competitive financial service industries, the agglomeration effect of leading enterprises is becoming increasingly prominent. Industry leaders such as Huajin Securities Co., Ltd., Xinyuan Asset Management Co., Ltd., Sinochem Factoring (Shanghai) Co., Ltd., and Schroder BOCOM Wealth Management Co., Ltd. all flocked to Jing’an District in recent years.
Clarins has been rooted in Jing’an District for many years, and its main team works at West Nanjing Road where multinationals are concentrated. The company’s headquarter in China is also here, but its R&D center, which is also its first overseas laboratory is located in the northern parts of the city on both sides of the Middle Ring Road. Its headquarters in the south and R&D center in the north have become important supports for Clarins to continue to expand in the Chinese market. This spatial layout spanning from north to south of Jing’an District provides Clarins with a broader development space.
II. The Endogenous Power of “One Axis, Three Belts” Builds the Connotation of Jing’an CBD Development
Core idea: The compound development axis runs through the core leading area, the in-depth expansion area, and the central support area, creating a Jing’an CBD development model with resource exchanges, industrial complementarity, cultural integration, and quality coordination.
The “1+3” core structure. That is, “1” refers to a compound development axis stretching from north to south; “3” refers to the West Nanjing Road core leading area, the in-depth expansion area on both banks of the Suzhou Creek, and the central support area on both sides of the Middle Ring Road.
The core leading area at West Nanjing Road-Build a core engine for CBD development. Jing’an District takes it as the leader and core engine of the District’s development, with strenuous efforts to strengthen West Nanjing Road to build a solid foundation for economic development. After decades of development, the core area of West Nanjing Road spanning an area of 2.6 km² is now home to 1.3 million m² of high-quality office space providers above Grade A, and an additional 0.5 million m² of space will be added in the future. The building economy is the most developed. Jing’an District is the birthplace of the first “100-million-yuan building”, the first “building with a tax revenue of RMB 100 million per month”, and the first “building with a tax revenue of RMB 200 million per month” in Shanghai. In 2021, Plaza 66’s tax revenue exceeded RMB 10 billion, making it Shanghai’s first “10-billion-yuan building”, with a floor area output per unit of RMB 12,000/m². The District, therefore, has the highest economic density in the city. The building quality is the highest. West Nanjing Road has a large array of the world’s top commercial buildings, international brands and leading foreign enterprises. So far, the core area of West Nanjing Road boasts 8 super Grade A office buildings, accounting for 40% of the city’s volume, the strongest among the city’s business districts. Besides, West Nanjing Road features the best building facilities, and superb commercial and urban complexes in Shanghai, including the “Golden Triangle” and “Golden Five Star” property companies such as Swire, China Resources, and Hines. The headquarters economy is the most clustered. The core area accommodates representative international financial enterprises such as Blackstone, and Warburg Pincus; Well-known foreign professional service providers such as KPMG, and Cushman & Wakefield; Famous luxury brands such as LVMH, Kering, and Richemont. Professional services are the most developed. The completeness and agglomeration of professional services such as legal services, accounting and auditing, business consulting and investment management lead the city. Nearly 50% of internationally renowned leading enterprises in the professional service industry listed in the GaWC Directory are gathered in West Nanjing Road, most notably KPMG, Bain & Company, Roland Berger, and Ogilvy. “Shanghai Professional Service Alliance” is founded in the functional area on West Nanjing Road, making it a highlight of Jing’an District’s national comprehensive pilot reform for the service industry. High-end businesses are the most concentrated. West Nanjing Road has more than 600,000 m² of high-quality businesses such as Plaza 66, HKRI Taikoo Hui, Jiuguang Department Store and Fengshengli, covering all business forms. It has a cluster of the world’s first stores and high-end restaurants, with a coverage rate of more than 90% of the global luxury brands, and over 2,000 brands from home and abroad as well as three major luxury goods groups in the world, including Asia’s largest Louis Vuitton Maison, Starbucks Reserve Shanghai Roastery, and Prada Rong Zhai (Rong Zongjing’s Former Residence). Since 2021, the “unveiling economy” has become a shining label for Jing’an District’s commerce. In the first half of 2022, despite the impact of COVID-19, we still introduced 42 first stores of various brands (including four first stores nationwide), accounting for nearly one-fifth of the total number of first stores introduced in the city. The business district of West Nanjing Road has ranked first in the number of first stores in Shanghai for many years. In early July, four pioneering fashion design brands under the Italian luxury brand OTB entered JC PLAZA simultaneously, injecting new momentum into the unveiling economy of Jing’an District.
In-depth expansion on both banks of Suzhou Creek receives the biggest dividend from the spillover effect. As an integral part of Shanghai’s “One River and One Creek” System and the key development area of Jing’an District’s “One Axis, Three Belts” Development Strategy, Suhe Bay is the core waterfront section of the urban central area, and the only core CBD with endowments from both banks. 4.2 km² of land in this area is home to high-quality office space above Grade A covering 640,000 m², and an additional 770,000 m² of space will be added in the future. This unique geographical advantage boosts the economic development of Suhe Bay to new heights. Industry leaders continue to gather. China’s first national human resources service industrial park here has attracted 411 renowned human resources enterprises at home and abroad, making it a gathering place for professional service industries such as advertising media and human resources. In addition, it has several high-end asset management enterprises, with many high-quality enterprises from home and abroad such as Baillie Gifford, Shanghai Guojin Financial Leasing and Sumitomo Mitsui DS Private Fund Management. New buildings continue to be empowered. With the launch and operation of several high-quality new buildings such as Suhe Centre, Shanghai Jiuguang Center, Longsheng Fuxinhui, Jing’an International Center, and Financial Street, the building competitiveness on both sides of Suhe Bay and the two wings of the Middle Ring Road has been enhanced, forming a hierarchy of quality, price and space with the southwest agglomeration belt, to offer a more reasonable choice of space for various enterprises. The spillover dividend continues to amplify. As the best undertaking area for the spillover effect of West Nanjing Road, our Global Service Provider Program has introduced the global biopharmaceutical giant AstraZeneca, whose Global R&D Center was officially opened in October at EDGE, helping Jing’an District build a biomedical industry cluster and an innovative development highland. International brands such as Coach and its parent company Tapestry, which has taken roots in Shanghai for over a decade, are also drawn to the diversified architectural space and cultural features, and have plans to bring their office headquarters to Suhe Bay as well.
Support from both sides of the Middle Ring Road—To invigorate industrial innovation and expansion, the central support area on both sides of the Middle Ring Road establishes itself as an important carrier of the emerging industries of the Jing’an CBD. 7.1 km² of land in this area is home to high-quality office space above Grade A covering 1 million m², and an additional 460,000 m² of space will be added in the future. The emerging industry is booming. Based on the International Film and Television Park Circum-SHU, the Daning Area in the south is developing film and television media, e-gaming, and animation industries, with a total of 315 film and television enterprises brought in. As the Lingshi E-Sports Center has been inaugurated and Shanghai Electronic Sports Association has moved in, this region attracted 33 well-known e-sports enterprises to gather and form a complete gaming industry chain. The Shibei Hi-Tech Park in the north focuses on emerging industries such as big data, cloud computing, industrial Internet, and artificial intelligence to build a data intelligence industry cluster. It gathers high-quality enterprises such as the Science & Technology Research Institute of China Electrical Equipment Group, Shanghai Development Center of Computer Software Technology, AntChain, and Crostars Innovation. It has established the National Engineering Laboratory for Big Data Distribution and Exchange Technologies, Shanghai Shibei Institute of Data Security, and other functional platforms, with over 580 companies in data intelligence and over 200 hi-tech enterprises. The Shibei Digital Intelligence Ecological Park has been listed among the first featured demonstration areas for digital transformation. The buildings and parks are abundant in space. Daning Business Center, Shanghai Jiuguang Center, One Center, Zhihui Park, and other industrial carriers built in recent years have been continuously empowering the development of three potential industries: data intelligence, cultural creativity and life & health. Emerging industries are accelerating their aggregation in the two-wing regions of the Middle Ring Road. The area is the incubation place for the planning of new industries. The area on both sides of the Middle Ring Road gives full play to its advantages in industrial development, remains innovation-driven development, and vigorously strengthens the forward-looking planning of new industries. It spares no efforts to develop new industries in the digital economy, green and low carbon sector, metaverse and intelligent terminals, to establish itself as an exemplary and leading source of emerging technologies and a gathering place of innovative elements.