SHANGHAI aims to attract about 35 multinational companies to locate their regional headquarters here this year, with foreign direct investment seen to jump 10 percent, the Shanghai Commission of Commerce said yesterday.

"It is a very conservative target," Shanghai Vice Mayor Zhou Bo said. "What we want to ensure is that Shanghai will become the best choice for foreign investors, which brings them the biggest returns."

Last year, 50 new regional headquarters of MNCs were established in Shanghai while FDI inflow surged 20.5 percent.

By the end of last year, Shanghai has attracted 403 MNCs to set up their regional headquarters and 351 research and development centers chose to locate here. They helped the city establish itself as China's biggest hub for these headquarters.

Although rising operational costs and fiercer rivalry from other cities have dented Shanghai's attractiveness, Zhou said, Shanghai still has advantages including the overall competitiveness of its location, efficiency and culture of commerce.

"The city aims to be a global hub of finance and trade, which makes it special to many businesses," he added.