Sun is aiming high, and cites two prime examples of the type of destination he sees the west bank of Shanghai becoming in future - La Rive Gauche, or the south bank of the river Seine in Paris, which clusters culture and related industries together and the south bank of the river Thames in London, which also attracts a large number of galleries, creative industries and designers.

A number of world-leading companies have already settled in Xuhui.

DreamWorks Animation, the US film company, announced plans in August last year to build a $3.14 billion theme park in the West Bank Media Port in Xihui district. The studio's newly formed China joint venture, Oriental DreamWorks, is scheduled to open the theme park in 2016, and it is expected to bring in 20 million visitors a year.

Major Hong Kong-based entertainment companies including Television Broadcast Ltd and Emperor Motion Pictures have also created a foothold in the west bank of the river.

Sun also said at the ULI Asia Pacific Summit that two privately-owned galleries are expected to open in Xuhui by the end of this year.

A flagship store of Eslite Bookstore, Taiwan's best known retail bookstore chains, is expected to open soon too, as is the largest IMAX screen in China.

Back in the special administrative region of Hong Kong, huge efforts are being made to establish its own creative community in the meantime.

"The academic standards of most Hong Kong designers are comparatively low, but the really good thing is that the government there is giving continuous support," said Zheng Peiguang, the chairman and CEO of Shanghai Redtown Culture Development Co, who has been working in Hong Kong for over a decade.

"For example, the Hong Kong Design Center is wholly government sponsored and is enabling designers to whole-heartedly focus on their work," Zheng added.

Since its establishment in 2000, Hong Kong's Innovation and Technology Commission has invested heavily in the Hong Kong Productivity Council, and Hong Kong Applied Science and Technology Research Institute Co Ltd.

Of the commission's HK$559 million (US$71.9 million) in funding for 2013 and 2014, HK$318 million was devoted to HKPC and HKASTRI, bringing much-needed finance to the special administrative region's creative community.

The Hong Kong government has also promised to provide financial help to six public universities in Hong Kong via the Innovation and Technology Fund over the next three years.

Each university will receive as much as HK$12 million to enhance their ability to commercialize their technology.

As the sixth largest technology exporter to the Chinese mainland, Hong Kong has the know-how to help organizations in the mainland reshape themselves into more knowledge-based entities, Chief Executive Leung said.

Although Hong Kong may have a lack of experience in doing so, Leung said people should think "smart about the future", especially with regards the "innovative solutions" required for the country's "urban regeneration plans".