(Yicai Global) Oct. 29 -- Shanghai has penned investment agreements with over 10 partners, including French sports equipment retailer Decathlon Group, and a China unit of Japan's Takeda Pharmaceutical. The move speaks for the eastern megacity's increasing business potential for multinationals.

The Shanghai Municipal Government signed agreements for 12 foreign-funded investment projects, valued at CNY23.4 billion (USD3.4 billion), Yicai Global's Chinese sister publication called Yicai reported on Oct. 27. The projects involve sums over USD100 million, and some of them will increase investment in firms such as car startup NIO, and logistics firm Ane Juchuang Supply Chain Management.

"This shows that Shanghai has become an important node and growth point for the global network of multinational corporations," said Yuying Shang, director of the Shanghai Municipal Commission of Commerce.

The latest investment will be mainly used for the development of anti-tumor and immune drugs, said Yan Wu, communications and external affairs director of Takeda. The reason for the investment increase is China's reform in the drug approval system and market potential, the director added.

"Our multiple myeloma products got to the market earlier than scheduled in April," Yan said. "They will be included in the national medical insurance from Oct. 10, which means better accessibility."

Ane plans to enlarge its investment by CNY1.44 billion to put into intelligent logistics to improve delivery speed and efficiency. "The market for less-than-truckload shipping is growing at an average annual rate of 20 percent, whereas that of our company is 70 to 80 percent," Chairman Yongjun Wang said.

The firm became a foreign-owned company in 2013 due to a strengthening interest from international investors, such as US asset manager Goldman Sachs.

Japanese electronics maker Omron invested a total of CNY70 million (USD10 million) to expand and smarten up its plant in Jinqiao district in Shanghai by 2025. With the upgrade, the level of automation will rise up to 80 percent from 25 percent and the output value is expected to reach CNY2.8 billion.

The reason for the move is the demand for automation in the Chinese market, as well as the company's development strategy, said Masato Nishiyama, managing director of Omron Shanghai.

The government's emphasis on research and development has also increased significantly, giving Omron policy support, Nishiyama added.

Editor: Emmi Laine