(Yicai Global) May 12 -- Shanghai’s consumption and foreign direct investment inflow have been picking up as the policy support implemented by the local government take effect.

Retail sales of consumer goods in the city reached CNY461.1 billion (USD66.4 billion) in the first quarter, up 5.2 from a year earlier and 1.2 percent from the same period in 2021, Zhang Guohua, deputy director of Shanghai commerce commission, said at a press briefing yesterday.

China’s largest consumer city introduced 15 measures on March 24 to promote and expand consumption through the development of the first-store, brand, night, and livestream economies.

Shanghai’s offline consumer payments stood at CNY34.4 billion (USD5 billion) during the five-day May Day holiday that ended on May 3, rising 6.2 percent from a year earlier to reach 90 percent of the figure in the same period of 2021, Zhang noted.

Online retail sales were CNY24.5 billion over the holiday, up 18.7 percent from a year ago, ranking first nationwide and accounting for 10.8 percent of China’s total in the period, according to Zhang.

As part of its efforts to promote consumption, Shanghai kicked off its annual Double Five Shopping Festival on April 29. The event includes launch ceremonies and achievement shows, as well as 12 consumption themes, including nightlife, tourism, imported goods, coffee culture, food, jewelry, and sports. All 16 of the city’s districts are also holding their own themed activities.

In the first four months of the year, 375 companies opened their first store in Shanghai, the most among Chinese cities.

Shanghai held 72 exhibitions and activities between January and April, recovering to about 70 percent of the pre-pandemic level in 2019, Zhang said.

During the 2023 Autumn/Winter Shanghai Fashion Week, more than 70 new product release events were staged, attracting over 22.2 million livestream viewers and boosting consumption in the business districts around the show venue by over 20 percent, Zhang noted.

Besides consumption, Shanghai is also focusing on bolstering foreign investor confidence and expectations, attracting FDI, and guaranteeing the implementation of key foreign-funded projects.

FDI flows into the city jumped 28 percent to USD7.8 billion in the three months ended March 31, Zhang pointed out, adding that multinational firms set up 16 new regional headquarters and seven new research and development centers in Shanghai in the period, lifting their number to 907 and 538, respectively.

Shanghai remains one of the world’s most attractive areas for foreign investment, according to Zhang. It issued policies to help businesses expand markets and stabilize foreign trade orders. The city’s first-quarter foreign trade rose 3.5 percent to CNY1.05 trillion (USD151.2 billion) from a year earlier, Zhang said.

Moreover, Shanghai plans to speed up the innovative development of service and digital trade, Zhang said. Its cross-border e-commerce imports and exports jumped 1.3 times to CNY105.5 billion in the first four months from a year earlier.

Editors: Shi Yi, Futura Costaglione