​ Lujiazui which literally means "Lu's Mouth", is located in the Pudong New District on the eastern bank of the Huangpu River. It forms a peninsula on a bend of the Huangpu River as it turns from north to east. The importance of Lujiazui stems from the fact that it lies directly across the river from the Bund, the old financial and business district of Shanghai, and just south of the confluence of Suzhou Creek and the Huangpu River. Until the 1980s, Lujiazui was a relatively undeveloped area, featuring residential houses, warehouses and factories.

The entire financial and trade zone covers an area of 28 square kilometers with a 6.8-square-kilometer planning and development area containing more than 100 buildings and skyscrapers.

It sits east of the Yangtze River Delta, one of the most affluent areas in China, where the Yangtze River flows into the ocean along China’s coastal line. The Lujiazui Financial and Trade Zone is in the central western part of the Pudong New District and is at the forefront of China’s reform and opening up. It is also the core area for Pudong’s reform and development.

Facing Huangpu River in the west, Lujiazui is adjacent to the Jinqiao Development Zone and Zhangjiang Hi-Tech Park in the east and the Sanlin Expo area in the south. It enjoys unique geographical advantages and broad space for development. The neighboring Pudong International Airport connects it with countries and regions around the world, making Lujiazui a gate for overseas investors to enter the Pudong New District. Lujiazui is also connected to the Waigaoqiao Port Area in the north, opening it to many important port cities around the world. Every year, trillions of standard containers of cargo are transported from this area to every corner of the world.

​Preferential policies

The government has given the Lujiazui zone many preferential policies. The State Administration for Industry and Commerce of the PRC (SAIC) plans to set up a modern enterprise registration system that can better serve the companies in Shanghai. The SAIC will also support the modern service industry and new industries in Shanghai.

It supports Pudong as a pioneer in reform and opening-up, especially in key industries and important production procedures. It will also enhance the role of the marketplace, releasing 18 policies to promote the development of key projects and industrial bases with more new policies to follow.

The companies in this zone follow three policies, based on an annual assessment, human capital investment and the installment of registered capital.

The government encourages diverse ways to set up the companies in Pudong, including options such as equity contribution, foreign investment, industrial structure upgrades and factor market innovation. These options are also summarized in eight new policies.

Incentives: Incentives will be awarded to multi-national and domestic company headquarters, commercial and trade, modern service, shipping and high-tech companies and other key projects in this zone based on performance and contributions.

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