Shanghai set for lowest growth in 17 years in '09

SHANGHAI (Reuters) - China's financial hub, Shanghai, expects its economy to grow by around 9 percent this year, Mayor Han Zheng said on Tuesday, which would be the slowest growth in 17 years, as China's economy weakens amid the financial crisis.

"At present, the global financial crisis has not yet hit bottom, its impact on the global real economy is still deepening," Han said in a speech to the annual session of the city's parliament, which was broadcast by Shanghai TV.

"2008 was a difficult year for Shanghai's economic development," Han said. "Still, Shanghai's economy is likely to face even more and harsher difficulties in 2009, though it also faces opportunities."

The city government expects GDP growth to slow to 9 percent from an estimated 10 percent in 2008, Han said. From 1992 to 2007, it recorded double-digit economic growth every year.

One of the opportunities is to promote Shanghai's financial industry, including expansion of stock, bond and commodity futures and financial leasing markets, Han said.

The city will also work to launch new financial products, attract more foreign financial institutions and possibly run a trial of using the yuan as the settlement currency in some foreign trade, Han said without elaborating.

(Reporting by Lu Jianxin; Editing by Jan Dahinten)