Shanghai sits on the Yangtze River Delta on China's eastern coast, and is roughly equidistant from Beijing and Hong Kong. The municipality as a whole consists of a peninsula between the Yangtze and Hangzhou Bay, China's third largest island Chongming, and a number of smaller islands. It is bordered on the north and west by Jiangsu Province, on the south by Zhejiang Province, and on the east by the East China Sea. The city proper is bisected by the Huangpu River, a tributary of the Yangtze. The historic center of the city, the Puxi area, is located on the western side of the Huangpu, while a new financial district, Pudong, has developed on the eastern bank.
The current Shanghai government under Mayor Han Zheng has openly advocated transparency in the city's government. However, in previous years a complicated system of relationships between Shanghai's government, banks, and other civil institutions has been under scrutiny for corruption, motivated by faction politics in Beijing; these allegations from Beijing did not go anywhere until late 2006.
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