Hongkou District Launches Shanghai Hedge Fund Zone

Shanghai’s Hongkou district was home before the country’s Communist revolution to thousands of often stateless immigrants fleeing Hitler that lived in what was called the Jewish ghetto.   Landmark pre-war buildings in the area such as Broadway Mansions and the Astor Hotel are still standing, open as tourist spots and represent fairly well-preserved throwbacks to another era of the storied city’s history.

Since China launched its economic reforms in the 1980s, Hongkou has lacked the success of Shanghai’s wealthier areas such the Lujiazui financial district located directly across from it on the other side of the Huangpu River that divides Shanghai into two halves. The Hongkou government on Friday took a step toward catching up with the opening of the Shanghai Hedge Fund Zone.  Hongkou aims to piggyback on Shanghai’s existing appeal to foreign financial service companies through a new program that offers tax and other benefits to hedge fund management companies that wish to do business in the country.   Hongkou’s move also follows the establishment of the Shanghai Trade Free Zone in the city last month, another move by the Shanghai government to boost service industry growth.
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