As China’s GDP in 2010 became the world’s second largest, more and more people from all over the world started to realize its potential. Shanghai World Expo is a chance for China to show the world what is really happening there, at the same time, a stage for Chinese people to know their own nation well.
China is the number one energy consumption country in the world, which is five times of that in Japan, so Shanghai Expo focused a lot more on low carbon lifestyle, renewable energy, and other climate energy challenge.
Before Shanghai World Expo, the real estate of Shanghai was in a very high price and good condition. Great companies both domestically and worldwide came and invested in Shanghai. And Chinese people also valued the real estate conditions in Shanghai would be wonderful during the Expo and after it, so they bought houses and apartments around there, and tried to rent them during that time, or just simply do some small business. Many new hotels were built around 2008 and 2009, and they turned out to be extremely successful in business when the Expo was been held.
At the beginning of the Expo, many people questioned if it's going be a successful expo in financial aspect at all, since few people were there. The eve of the World Expo, Shanghai residents have been talking about a surprise: each Shanghai residential household will receive a ticket, a value of 200RMB traffic card, a map, a small Expo badge, and a Expo mascot Hai Bao. Local media have made a report on the matter, and quoted Yu Hansheng, the priminister for Shanghai city as saying, this to "thank the people for the World Expo Shanghai contribution." Rough calculations, the process does not include payment of costs incurred, the "appreciation list" will cost about 1.8 billion RMB.[1] For the huge Expo budget, 1.8 billion yuan (same as RMB) is not that much. According to official report, World Expo Park stadium construction costs 18 billion yuan, and the operating expenses is 10.6 billion RMB; Expo Land relocation investment is $40 yuan; and outside the Expo venue supporting projects costs more than hundreds of billions yuan.[2]
So where does all that money come from?
For the construction cost, which is18 billion yuan, the Shanghai municipal government made such an arrangement: the government invested 7.15 billion yuan, accounting for 40% of the amount invested; the central government approved the issuance of 8 billion yuan World Expo bonds, investment accounts for about 44%; the remaining 2.85 billion yuan is supplemented by a variety of financing methods.[3]
Shanghai Municipal Government has set up two state-owned company, as Expo District construction projects operating entities: Shanghai World Expo Land Holding Co., Ltd. (later referred to as the World Expo soil control) and the Shanghai World Expo (Group) Co., Ltd. (later referred to as the World Expo Group).[4] These two companies have issued debt Expo, by Industrial and Commercial Bank and Construction Bank to provide guarantees, and was quickly share a few insurance companies. Expo Group in April 2005 bonds 8 billion yuan, Expo land control is made twice a debt of 30 billion yuan and 40 billion yuan, with a 10-year annual interest rate of 4%.[5]
For operating expenses of $ 10.6 billion, is entirely through the market raising funds. Shanghai World Expo, the overall financial revenue is estimated at 9.61 billion yuan, including ticket sales, sponsorship, licensing, venue rental, etc.To the Expo Bureau announced 70 million visitors estimated, because of the system of given free tickets once its opened officially, to 160 yuan per ticket pricing, ticket sales more than tens of billion yuan.[6]
Expo Bureau also revealed that sponsorship has raised to 70 million, mainly from the Shanghai World Expo's global partners and senior sponsors, respectively, 13 and 14. In addition to Coca-Cola, Siemens, IBM and Cisco, the rest are more than 20 state-owned enterprises. The specific contribution each sponsor how much business with the Expo Bureau were not public information. Some media reports, Coca-Cola Company as a global partner, out of 500 million yuan sponsorship fee, not including advertising expenses. China Eastern Airlines is the first contract with the sponsor of the Expo Bureau, "financial" reporter learned from Eastern Airlines, China Eastern Airlines is the main provider of air passenger and freight Expo special services.[7]
Licensed retail sales, not to be underestimated is the amount of income. As of last year, more than 180 licensed products manufacturer Expo, 8000 a variety of goods, achieved sales of 3.1 billion. Shanghai World Expo Coordination Bureau of Business Management Services Minister Lin Sheng Yong said the Expo area of the retail public areas up to 1.05 billion.
Expo venue construction costs may be far more than official 180 billion.Control of bank loans Expo soil conditions or for support. April 2004, the Shanghai World Expo signed the first cooperation between banks, Commercial Bank of China, Pudong Development Bank, Bank of Shanghai World Expo Land control to provide a total of 5.5 billion yuan loan. In addition, in the Expo area to step up the construction of 2008 World Expo Land Bank to raise funds controlled $ 12.5 billion, 4 billion yuan of insurance funds to implement the use of 4 billion yuan trust fund, also received the government 600 million yuan working capital reserve of the land transferred. In addition, the new syndicated credit facility agreement signed $ 50 billion.
Shanghai Municipal Government has set up two state-owned company, as Expo District construction projects operating entities: Shanghai World Expo Land Holding Co., Ltd. (later referred to as the World Expo soil control) and the Shanghai World Expo (Group) Co., Ltd. (later referred to as the World Expo Group).[4] These two companies have issued debt Expo, by Industrial and Commercial Bank and Construction Bank to provide guarantees, and was quickly share a few insurance companies. Expo Group in April 2005 bonds 8 billion yuan, Expo land control is made twice a debt of 30 billion yuan and 40 billion yuan, with a 10-year annual interest rate of 4%.[5]
For operating expenses of $ 10.6 billion, is entirely through the market raising funds. Shanghai World Expo, the overall financial revenue is estimated at 9.61 billion yuan, including ticket sales, sponsorship, licensing, venue rental, etc.To the Expo Bureau announced 70 million visitors estimated, because of the system of given free tickets once its opened officially, to 160 yuan per ticket pricing, ticket sales more than tens of billion yuan.[6]
Expo Bureau also revealed that sponsorship has raised to 70 million, mainly from the Shanghai World Expo's global partners and senior sponsors, respectively, 13 and 14. In addition to Coca-Cola, Siemens, IBM and Cisco, the rest are more than 20 state-owned enterprises. The specific contribution each sponsor how much business with the Expo Bureau were not public information. Some media reports, Coca-Cola Company as a global partner, out of 500 million yuan sponsorship fee, not including advertising expenses. China Eastern Airlines is the first contract with the sponsor of the Expo Bureau, "financial" reporter learned from Eastern Airlines, China Eastern Airlines is the main provider of air passenger and freight Expo special services.[7]
Licensed retail sales, not to be underestimated is the amount of income. As of last year, more than 180 licensed products manufacturer Expo, 8000 a variety of goods, achieved sales of 3.1 billion. Shanghai World Expo Coordination Bureau of Business Management Services Minister Lin Sheng Yong said the Expo area of the retail public areas up to 1.05 billion.
Expo venue construction costs may be far more than official 180 billion.Control of bank loans Expo soil conditions or for support. April 2004, the Shanghai World Expo signed the first cooperation between banks, Commercial Bank of China, Pudong Development Bank, Bank of Shanghai World Expo Land control to provide a total of 5.5 billion yuan loan. In addition, in the Expo area to step up the construction of 2008 World Expo Land Bank to raise funds controlled $ 12.5 billion, 4 billion yuan of insurance funds to implement the use of 4 billion yuan trust fund, also received the government 600 million yuan working capital reserve of the land transferred. In addition, the new syndicated credit facility agreement signed $ 50 billion.
Shanghai the leaders said in an interview, the Expo will be dependent on the input to the development of land use solutions.Shanghai World Expo site planning of land range is 5.28 square kilometers, of which the Pudong section of 3.93 square kilometers, the Puxi part of the 1.35 square kilometers.[8] Shanghai is able to comfortably achieve "balance in economics", mainly because of the Expo land appreciation going up high. Bare in mind that the complete infrastructure of Shanghai Expo after the end is 5.28 square kilometers of land.
[1] http://money.163.com/10/0503/08/65OEMGF000252G50.html
[2] http://expo2010.ifeng.com/special/sbjjlt/
[3] http://www.sino-manager.com/2010511_14467.html
[4]上海世博会建筑施工Building Construction of Expo 2010 Shanghai China 上海世博会事物协调局，上海市城乡建设和交通委员会主编，上海科学技术出版社，2010，中国，p12.
[5]上海世博会建筑施工Building Construction of Expo 2010 Shanghai China 上海世博会事物协调局，上海市城乡建设和交通委员会主编，上海科学技术出版社，2010，中国，p13.
[7] http://www.china.com.cn/economic/txt/2010-04/30/content_19943694.htm
[8] http://www.china.com.cn/economic/txt/2010-04/30/content_19943694.htm
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