(Yicai Global) April 28 -- Shanghai is allocating eight square kilometers for the construction of five biopharmaceutical industrial parks over the next five years, the municipal government said today.

The project will help to attract investment from the world's top 100 and China's top 50 firms, the Shanghai Municipal Commission of Economy and Informatization said.

The move marks an important milestone in the development of Shanghai's biomedical sector which already accounts for 10 percent of the city’s gross domestic product. Last year the sector had turnover of CNY383.3 billion (USD54 billion), a rise of 11.6 percent year on year.

Cooperation deals with China Development Bank and other lenders were signed at today’s plaque unveiling ceremony. An industrial fund alliance consisting of 10 investors including Beijing-based Hillhouse Capital was also formed.

Located in the east, south and north of the city, the zones will eventually cover an area of more than 60 square kilometers.

The Zhangjiang Innovative Medicine Industrial Base will focus on biomedical innovations, the Lingang New Area will focus on precision medicines and diagnosis, while the Oriental Beauty Valley in Fengxian district will focus on biological products, active pharmaceutical ingredients and modern Chinese medicine, the SMCEI said.

Editors: Dou Shicong, Kim Taylor