SHANGHAI: Business leaders and scientists are among a group of professionals who can extend their residency permits under a new policy designed to attract more talent to the nation's most populous city.

The policy, which took effect yesterday, allows a greater number of overseas investors and professionals working in the city's Pudong district the opportunity to extend their residency permit to five years - the maximum term allowed in China with exception of the permanent residency pass.

The residency reform was approved by the Ministry of Public Security to help the city of nearly 20 million become more attractive to expatriates and help evolve the city into a larger financial hub by 2020.