The Shanghai government will launch favorable policies to attract companies to set up offices in the Hongqiao Central Business District, which is expected to be developed into the city's biggest international trading and high-end commercial center within five years.

Commercial development of the 86-square-kilometer business zone will begin later this year.

Chen Weili, deputy director general of the Hongqiao CBD Administrative Committee, yesterday told Shanghai Daily favorable tax practices will be launched to attract companies.

"We will introduce policy advantages for the future district and further improve its transport convenience to make it an international trading industry center," Chen said.

The official added they will try to attract the headquarters of trading, high-end services and consulting businesses to differentiate it from the Lujiazui area, which is centered around the financial industry.

Investment will reach 12 billion yuan (US$1.85 billion) in the first phase.

Hongqiao already boasts a convenient transport hub.