China's largest city and the communist giant's gleaming business hub, Shanghai has decided to build a 60,000-square-metre multipurpose 'underground city'.

The multi-level 'underground city', four-storeyed in some places, will be equipped with stores, garages, restaurants and all kinds of entertainment centres and facilities, a Shanghai-based newspaper said.

It is scheduled to be completed in 2006 and has been listed as a major scientific and technological programme by the Shanghai municipality, the Jiefang Daily reported.

The construction of the 'underground city' will comprehensively utilise the underground room of and around the existing subway pivots as well as their ground facilities.

The reports quoting experts from the Shanghai municipal government said due to lesser and lesser ground space in big cities, city dwellers have now begun to favour underground stores and garages.

They also said that they will build a sound ventilation system in the 'underground city' and introduce sunlight to build a greenbelt system in places where conditions permit.