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Sansha, China's southernmost island city,has drawn 16 of the world's 500 largest companies to register on the island, according to Feng Wenhai, deputy mayor of Sansha, while giving a presentation on the city's government work report recently.

With a registered capital of over 3 billion yuan (434 million U.S. dollars), 157 registered enterprises in Sansha paid taxes totalling more than 1.53 billion yuan (221 million U.S. dollars), Feng said.

The companies operating on the island cover a range of sectors, including agriculture, tourism, aviation, transport and culture.

There are also several financial institutions, such as the Industrial and Commercial Bank of China and the Bank of China, which have opened branches on the island. Other institutions, include China Development Bank and the Agricultural Bank of China, which have entered into strategic partnership with the city government.

Sansha aims to attract more companies in the next five years by providing supportive fiscal and tax policies, and further simplifying business registration. It also welcomes enterprises to start innovation and research centers on the island, Feng said.

Sansha City was officially established in 2012 to administer the Xisha, Zhongsha and Nansha islands, and their surrounding waters in the South China Sea.