1. 2013 Briefing on Shanghai’s Commerce and Investment Mr. Zhou Bo Vice Mayor Shanghai Municipal People’s Government

2. Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic Transformation proved to be effective and made great achievements Total GDP last year: 2 trillion RMB, 7.5% growth year on year Local fiscal revenue last year: 374.37 billion RMB, 9.2% growth year on year Consumer price up by 2.8% last year, a 2.4 percentage drop in increase compared to 2011 1. orderly run economy

3. Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic Transformation proved to be effective and made great achievements 2. faster pace in structural upgrading The tertiary sector, which took up 60% of the total GDP, saw a 10.6% growth in added value last year, outpaced the industrial sector by 7.5% With consumption contributed over 70% of economic growth, the city’s economy became less reliant on sectors like investment, real estate, heavy industry and labor intensive processing industry Great progress has been made in energy conservation and emission reduction, with energy consumption per unit GDP reduced by 10.5% in the last 2 years

4. Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic Transformation proved to be effective and made great achievements Faster upgrading of the city’s functions 1227 registered financial institutions Total trade volume of the financial market reached 528 trillion RMB Shanghai’s port has the world largest container throughput 3 years in a row Pudong Airport has The third largest Airport cargo throughput in the world for 4 consecutive years The construction of the city as an international cultural center and smart city paced up, with optic fiber access covering 6.5 million households

5. Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic Transformation proved to be effective and made great achievements Innovations in reforms and follow up on breakthroughs the pilot scheme of business tax in lieu of value added tax proved to be effective new progress has been made in “Pudong Across-the-board Coordinated Pilot Reforms” and other key reforms a significant improvement in scientific and technological innovation capacity

6. Last year, facing challenging economic situation home and abroad, Shanghai’s strategy of Innovation-Driven Economic Transformation proved to be effective and made great achievements constant improvement of people’s well-being 613,800 newly created jobs 10.9% and 11.2% y-on-y increase in urban and rural residences’ disposable income 167,000 subsidized housing of various kinds are either in construction or being planed, with a total area of 12.82 million ㎡ spending on environmental protection was maintained at 3% of total GDP, with 5500 hectares of newly built green space People’s well-being

7. Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom Expedite Reduce Multiply Eliminate During Shanghai’s “Two Sessions”, Secretary of CPC Shanghai Committee, Mr. Han Zheng said ： “Reform is the biggest dividend, opening-up is the biggest advantage, innovation is the most important driving force, talent is the most important resource

8. Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom With trials and pilot schemes to push forward the reform on economic system and further open up the economy Expedite means expedite the development of strategic emerging industries and the improvement of the city’s capacity to serve the whole country 1.Deepen the “across-the-board coordinated pilot reforms” and pilot on the establishment of Free Trade Zone 2.Continue to reform on the opening of off-shore foreign currency account and innovations in financial leasing 3.Continue to expand the pilot scheme of business tax in lieu of VAT, incorporate industries like post and communication industries into the scheme when appropriate 4.Support the development of headquarter economy and put in place a comprehensive policy framework to support MNCs establishing regional headquarters 5.Encourage and support capable local enterprises to invest abroad

9. Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom Committed the city to develop modern service industry and reform on collective operation and management of foreign exchange owned by MNCs’ headquarters Reform on collective operation and management of foreign exchange owned by MNCs’ headquarters Push forward the pilot scheme of foreign exchange management by International Trade Settlement Center Accelerate the development of the EXPO area, Lingang area, Hongqiao Business District and Shanghai International Tourism Resort Reduce means further reduce the reliance of Shanghai’s economy in 4 areas Focus on key industries, key projects, key districts and accelerate the process of economic restructuring and transformation

10. Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom Reform the modern service industry and the government licensing process for investment projects, adopt standardized procedure in the licensing process across the board Limit the areas where the government can invest in and further delegate the autonomy of investment to enterprises Spare no effort in improving administrative transparency and introduce in the mechanism to disclose the draft of major administrative decision to the public Improve rule based operation. Exercise the power and honor the responsibilities strictly in line with the legal procedures and within the discretion granted by law Multiply means the improvements in administrative efficiency and legal environment should have multiplier effect Mindful of our objective to build a rule-based, clean, accountable and service oriented government, we aim to transform the role of government

11. Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom eliminate means further eliminate backward capacity and the industries with high energy consumption, high pollution and high risks create a resource conserving and environment friendly society in line with the principle of controlling the total amount of resources, adjusting the remained resources, focusing on efficiency and encouraging social participation Push forward the industrial transformation and upgrading Promote the convergence of Industrialization and informatization Encourage enterprises to invest in upgrading technologies Actively develop production-related service industry Support key industrial enterprises in transforming themselves into R&D, sales and advanced manufacturing oriented entities Eliminate 500 backward capacities with high energy consumption, high pollution and high risks

12. Standing on a new starting point, Shanghai will continue to reform and further open up, forging ahead with greater courage and wisdom To enhance the city’s management To build a deep talent pool To build a Smart City

13. Happy New Year