Shenzhen in South China's Guangdong province remained a beacon for foreign investment in 2023, said a report by global consultancy powerhouse PwC, as the tech mecca welcomed 7,258 new foreign-invested enterprises during the past year.

The report, which was published on Monday by PwC, Nanfang Daily and the Shenzhen Federation of Industry and Commerce, was based on a five-month study polling 134 perspectives from varying tiers of the city's government agencies, institutions and enterprises in order to offer a panoramic view of Shenzhen's business ecosystem.

According to the report, Shenzhen showcased its magnetic pull for foreign investment in 2023 with the city's endeavors to refine its business milieu to global standards and as a result, 7,258 new foreign-invested enterprises were set up in Shenzhen, which accounted for 15.1 percent of the total in the Chinese mainland.

The report said that from January to October 2023, a significant portion of foreign investment flowed into Shenzhen's manufacturing sector, which has seen an influx of 17 billion yuan ($2.36 billion), marking a 186 percent increase from the previous year. The high-tech sector alone saw a 16 percent growth, underscoring Shenzhen's allure for cutting-edge industries.

Meanwhile, the report not only charts the progress but also introduces five innovative features of Shenzhen's business environment reforms. It goes further to offer seven strategic recommendations aimed at alleviating market pain points, distilled from insights gathered through interviews with local businesses and investment officials.

Among them, the importance of maintaining a stable and supportive environment for existing businesses was emphasized because "tailored services throughout an enterprise's lifecycle can significantly boost investor confidence" and because feedback from 32.26 percent of the private enterprises surveyed suggested enhancing policy continuity and enforcement at the municipal level.

To this end, Guo Ziping, director of the Shenzhen Development and Reform Commission, encapsulated the city's ethos, saying, "There is no 'best' business environment, only one that continuously improves".

"The most important thing is to enhance the outlook and confidence of private entrepreneurs vis-a-vis the future. Confidence building is a gradual process and cannot be solidified overnight. This is especially the case for innovative enterprises that require extended periods to grow and develop, so stable macro policies are needed to provide them with confidence and guidance," said Tian Xuan, associate dean of the PBC School of Finance, Tsinghua University.

Li Yihui in Guangzhou contributed to this story.