Foreign-invested companies in Shanghai boosted their profitability last year and the government will open the manufacturing and service sectors wider, especially in the free trade zone, to foreign investment, officials said yesterday.

Their profits jumped 12.3 percent year on year in 2016 while revenue rose 5.5 percent, said Shang Yuying, vice chairwoman of Shanghai Commission of Commerce, citing a survey of 15,200 foreign-invested companies in the city.

Shang quoted data from Shanghai Statistics Bureau showing that profits of sizable industrial companies with foreign, Hong Kong, Macau and Taiwan investment increased 16 percent last year, indicating overall improvement in the profitability of foreign-invested companies.

These companies contributed two thirds of Shanghai's industrial production as well as two thirds of foreign trade and a third of tax revenue.

"Shanghai highly recognized the important contribution of foreign-invested companies to the city's economic and urban development," Shang said.

"We are fully confident for the new year, and will pay greater efforts in building a more legalized, international and convenient business environment."

Shanghai encourages foreign investment in advanced and green manufacturing, and will allow foreign-invested companies to participate in government-led technology projects to support the city's industrial upgrading.

Shanghai's free trade zone officials said measures are being studied to open wider the sectors of accounting, construction and credit rating services to foreign capital.

Foreign investors in the city will also be allowed greater freedom in the banking, securities and insurance sectors.

Source: Shanghai FTZ Government.cn