Auto industry supplier KSPG (China) Investment Co, one of the 33 firms receiving approval to set up regional headquarters in Shanghai a month ago, shared its reasons for setting up camp in the Hongqiao Central Business District (CBD).

Lothar Schneider, president of KSPG (China) Investment Company (mid) and Jiang Wen, vice president and chief financial officer of KSPG China (right), give an interview. [Photo provided to China Daily]

In a recent interview, the firm's president, Lothar Schneider, owed the move to the district's advantaged traffic conditions which is of strategic importance to KSPG's development in China.

Serving as the transport hub of the Yangtze Delta River region, Hongqiao CBD features easy connections to neighboring big cities, only 45 minutes by China high-speed railway trains from Hangzhou in Zhejiang province and 67 minutes from Nanjing in Jiangsu province. Considering that most of KSPG's plants are located around Shanghai, the choice of headquartering in the CBD is no great surprise.

Gradually growing into a cluster district of headquarter economy, Hongqiao CBD is proving itself the preferred choice for many investors based on its mutual investment environment, preferential policies and quality facilitates, including KSPG who has a registered capital of 366.4 million yuan ($56.5 million) in the area.

KSPG (China) Investment Company is located in the Vanke Office Building. [Photo provided to China Daily]

The authentication KSPG won as a multinational in the CBD, granting access to several state-level preferential policies, has become an inspiration for the company staff, said Jiang Wen, vice president and chief financial officer of KSPG. He introduced that a few law and tax specialists have been recruited to further outline a characteristic development plan for the Chinese market.

To date, more than 700 enterprises have settled in Hongqiao CBD, among which 40 serve as regional headquarters. They have played a significant role in the development of the regional economy. Featuring an advantageous location and a mature investment environment, the CBD is expected to attract more companies as it continues to develop.