Shanghai Mayor Han Zheng on Friday met a delegation led by Susumu Kato, President and CEO of the Sumitomo Corporation Group, an integrated trading company based in Japan.

Han said the city has more than 40,000 foreign-funded enterprises, with Japanese companies accounting for around 15 percent.

The city government would continue its support for the development of Sumitomo, which had invested in about 30 projects in Shanghai, Han added.

He encouraged foreign-funded enterprises to invest more money in the service sector as well as energy conservation and environment areas, which he pointed out have huge potential for future development.

Echoing Han's proposal, Kato said Sumitomo would further its investment in the city. He said Sumitomo was willing to cooperate more closely with the city in energy conservation and the environment.