Shanghai's Huangpu district announced plans yesterday to build the Bund Financial Zone.

Initial talks have been held with major local developers, but concrete plans on the development haven't been discussed.

A spokesman said talks with major local developers such as Wharf, Henderson Land Development and Sun Hung Kai Properties took place, but the development details had not been discussed.

Despite the global financial tsunami's impact still unfolding, Shanghai's Huangpu district has already made plans to build a complementary financial zone on the river bank facing Pudong Lujiazui Financial Town.

Zhou Wei, mayor of Huangpu district said: "This development shows the mainland government's confidence in the financial industry".

He added that the development may take three to five years.

According to the plans, the Bund Financial Zone starts from the south side of the Suzhou River and ends at Lu Jiabang Road. The east end is the Huangpu River, and the west end is Mid-Henan Road (Henan Zhonglu). The river bank is about 4.8 km long and covers a land area of 2.6 sq km.

Deputy Magistrate Shen Xiaochu said: "The price is not fixed yet. We will leave it to the market to decide".

According to the statement, the zone will develop the financial sector and related services to support the Lujiazui Financial market, as well as financial organizations in the area.

"An open bid for the land-use rights of the center block of the South Bund International Financial Area will start by the end of 2008. The construction of 204 blocks, located on East Zhongshan and Xinkaihe roads, will also begin by year's end, the statement said.

(HK Edition 10/28/2008 page2)