Wang also pointed out that overseas entrepreneurs in sectors such as culture, professional services, management and consulting tend to register their businesses in the downtown area, while those involved in bio-medicine, robotics and big data favor the city's free trade zone and the Zhangjiang Hi-tech Park in Pudong. Wang explained that the preferential policies offered in different areas play a major role in influencing where overseas start-ups choose to set up.

A tourist poses for a photo on the Bund in Shanghai. [Photo/VCG]

Wang noted that to ensure the success of their businesses, overseas entrepreneurs should study closely the local business, policy and social environment in their local area. It's also important to cater to market demands and tap into more resources.

With more foreigners looking to start their own businesses in Shanghai, the city is displaying new vibrancy and appears to be on the fast track to becoming a global innovation and technology hub.