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| Part Three Shanghai’s Investment Environment for Enterprises with Foreign Investment |
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14. Shanghai’s Investment Environment for Enterprises with Foreign Investment
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14.2 Analysis |
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When questionees take questions, they may choose one or more items or they may leave it blank. Therefore, the aggregate statistics may exceed 100%.
14.2.1 Background of the respondents
(1) On the origin of the foreign fund
Among the respondents, enterprises from Japan counted most, making up nearly a quarter of all (24.9% exactly), followed by US 20.7%, EU 18.3%, Hong Kong SAR 13.1% and Taiwan, PRC 11.7%. Companies from other countries or regions accounted for 12.2% (See Chart 14-1). |
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(2) On the industry the investment activities engaged in
The majority of the respondents invested in manufacturing, accounting for 70.4% of all, followed by wholesale and retail 14.1%, real estate 5.6%, logistics and transportation 3.3%, finance 1.4% and 14.6% in other sectors (See Chart 14-2). |
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3) On the number of employees
The result revealed that small and medium-sized enterprises took the majority of the respondents. Nearly half of the respondents (47.4%) employed 100 to 500 staff while still 22.5% no more than 100. Altogether, up to 70% enterprises surveyed had no more than 500 employees. Besides, 11.7% had the staff number between 500 and 1000 and those with 1000 to 3000 and more than 3000 accounted for 14.1% and 3.3% of all respondents respectively (See Chart 14-3).
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(4) On the investment amount
The foreign-invested enterprises surveyed with investment amount ranging from US$1 million to US$10 million made up roughly 40% of all and those with no more than US$1 million, or between US$10 million and US$100 million or more than US$100 million accounted for 12.7%, 6.6% and 8.9% respectively (See Chart 14-4).
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(5) On the time span of foreign-invested enterprises in Shanghai
Enterprises having done business in Shanghai for more than ten years, between six and ten years and less than 6 years accounted for almost the same in number, each with approximately one third of all respondents, including 10.8% more than 15 years, 25.8% 11 to 15 years, 31.0% 6 to 10 years, 17.8% 3 to 5 years and 14.6% less than 3 years. (See Chart 14-5)
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(6) On the type of the investment
Approximately seven-in-ten respondents were wholly foreign-owned enterprises, 23.0% Chinese-foreign equity joint ventures, 7.0% Chinese-foreign contractual joint ventures and 1.9% share holdings (See Chart 14-6).
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(7) On the overall profitability
Almost half of the respondents (48.4%) reported their profitability as “fair”. Together with those reported “very good”, nearly six-in-ten (57.3%) foreign-invested enterprises were enjoying sound profitability in Shanghai. In addition, nearly one fifth reported “break-even” and 14.6% “loss-making”. Serious loss-making enterprises accounted for 4.2%. Other 4.7% respondents skipped this question (See Chart 14-7).
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(8) On business expansion for the next three years
According to the respondents, approximately 1/5 (21.6%) decided to expand “substantially”, more than half (51.2%) “moderately”, about a quarter “no change” while only 0.5% preferred to decrease. But none of them planned to move to other cities, which indicated that they were confident about investing in Shanghai (See Chart 14-8).
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