This publication, provided by KPMG Huazhen, presents an overview of matters to be presents an overview of matters to be considered by those contemplating investments in Changsha, the capital of Hunan Province in south- central China. The original version of this booklet was released in May 2003 and updated in 2005 and 2006. This April 2007 publication is the fourth edition.
The sources of information in this booklet have been attributed throughout; the assistance of the Changsha Municipal Bureau of Commerce (MBC) is gratefully noted. In addition to secondary information, KPMG analyzed data from Changsha's foreign-invested companies in January 2007 with regard to their actual costs and operating practices. This data is included in this booklet. This booklet contains information available as at early February, 2007.
Changsha itself has seen great development in the last year. During the 2005-2006 period, the city¡¯s economy has grown at an annual rate of 14 percent. The city is continuing to implement the Changsha's goverment's development plan of "building Changsha as a city that is flourishing, creative, modern and harmonious." Other notable developments include:
¡¤Xia-ning New Port (phase 2) was completed in September 2006 with a 2000-ton berth
¡¤In 2006, Changsha attracted a record amount of inbound investment, roughly USD 1.2 billion. This includes new investors such as Henderson Land, Nokia and ConAgra, and existing investors such as HEG, Hutchison Whampoa, Bosch, Carrefour and Wal-mart, who expanded their investment in Changsha
¡¤Changsha was named ¡°National Forest City¡± by the China Forestry Bureau in 2006
One constant aspect of investing in China is the importance of careful planning.We recognize that the lack of reliable information such as cost data can be an impediment to the investment process. This publication, commissioned by the Changsha Municipal Government, is designed to address the needs of foreign investors for accessible, independently researched information on the business environment and costs in Changsha.
The business environment, especially with regard to costs, can change quickly in China. Moreover, cost and operational issues vary from company to company and industry to industry. Companies doing business in China, or planning to do so, are advised to obtain current information and company-specific advice from experienced professional advisors; this report should not be construed as a substitute for due diligence on a proposed investment. |
