(Yicai) July 20 -- Shanghai's gross domestic product expanded 5.6 percent year on year in the first half of 2026 at constant prices, outpacing the national average by 0.9 percentage point as growth in industry, finance, and information technology services continued to strengthen.

The stronger-than-national growth reflects the city's accelerating industrial upgrading and expanding high-value service sectors. Industrial, financial, information transmission, software, and information technology services together contributed more than 70 percent of Shanghai's economic growth during the period, according to data released today by the municipal statistics bureau.

The value added of the secondary (industrial) and tertiary (services) sectors rose 4.7 percent and 5.9 percent, respectively. Shanghai's industrial output, fixed-asset investment, and emerging service industries all outperformed national trends, according to the bureau.

Economists said the city's industrial transformation, growing investment in advanced industries, and strengths as a financial, trade, and shipping hub are expected to continue supporting growth through the rest of the year.

Industrial Upgrade Drives Growth

Shanghai's 5.6 percent growth was mainly supported by industrial restructuring and the city's unique economic advantages, Zhan Yubo, deputy director and researcher at the Institute of Economics under the Shanghai Academy of Social Sciences, told Yicai.

He said Shanghai's "new quality productive forces," or advanced innovation-driven industries, continue to lead the country, with rapid growth in the city's three leading industries, a rising share of high-end manufacturing and strategic emerging industries, and steady revenue growth in high-value-added digital and financial services.

On the demand side, consumption is upgrading, investment in high-end industries is increasing, and foreign trade continues to benefit from Shanghai's role as a major trade and logistics hub, Zhan said. “These three driving forces demonstrate stronger momentum than the national average.”

Official data showed that Shanghai's industrial value added at enterprises above a designated size increased 5.7 percent from a year earlier in the first half, 0.3 percentage point faster than the national average. The city's industrial growth had lagged the national level for years before surpassing it in the first quarter for the first time in recent years, industry insiders told Yicai. The turnaround has been driven by industrial restructuring and the replacement of old growth drivers with new ones, providing stronger support for economic expansion.

"The greatest highlight of the industrial sector is its high 'innovation content,' with new growth drivers becoming the main force," Ma Haiqian, deputy director of the Shanghai Academy of Development and Reform, told Yicai.

Output at Shanghai's three leading manufacturing industries rose almost 15 percent year on year in the first half. Integrated circuit manufacturing output climbed 20 percent, artificial intelligence manufacturing increased 22 percent, and biomedicine manufacturing advanced 7 percent.

While China's fixed-asset investment fell 5.7 percent in the first half, Shanghai's fixed-asset investment rose 6.8 percent, driven in part by a 19 percent increase in industrial investment and a 19 percent gain in urban infrastructure investment.

'Five Centers' Gain Momentum

Shanghai's emerging service industries also maintained strong momentum. The value added of the financial sector rose 10 percent, while information transmission, software, and information technology services increased 9 percent. Leasing and business services surged 26 percent, and transportation, warehousing, and postal services grew 4 percent.

As new growth drivers gather pace, Shanghai is accelerating its "Five Centers" strategy to strengthen its role as an international economic, financial, trade, shipping, and science and technology innovation hub.

The city's international financial center continued to expand, with 14 companies filing applications to list on Shanghai's Star Market in the first half, the highest number nationwide. Shanghai also continued upgrading its international trade center, with imports and exports under the cross-border e-commerce supervision model at Shanghai ports reaching CNY84.9 billion (USD12.5 billion), up 31 percent from a year earlier.

The international shipping center continued to strengthen, with container throughput at the Port of Shanghai rising 6 percent and passenger and air cargo throughput at Shanghai airports increasing 3 percent and 14 percent, respectively. Shanghai's international science and technology innovation center continued to expand, with the city now home to 19 high-quality incubators.

Editor: Emmi Laine