The West Lake in Hangzhou, East China's Zhejiang province. [Photo/Sipa]

Financial city Shanghai has the best business environment in the post-novel coronavirus era in China, according to the latest report on China's urban business environment index.

The capital city Beijing grabbed the second spot on the list of cities with best business environments in China, followed by Shenzhen and Guangzhou in South China's Guangdong province.

Market, legal and innovation environments are factors influencing a city's business environment, and taxation policies are also important for enterprises, Sina Finance reported.

Hangzhou, capital of East China's Zhejiang province, ranks No 5.