Shenzhen recorded the largest increase in permanent residents among Chinese cities in 2025, a rare bright spot as some megacities lose their appeal amid a deepening demographic shift.

The southern tech hub added 259,000 permanent residents last year, bringing its total population to 18.25 million, according to a notice released by the local government on Monday.

Designated as China’s first special economic zone in 1980, Shenzhen has since evolved into one of the country’s most powerful population magnets, a trend analysts attributed to a mutually reinforcing relationship between sound economic policies and human capital.

He Yafu, an independent demographer, said the region’s decades-long track record had underscored the broader economic benefits of a growing population.

“Shenzhen’s development over more than 40 years shows that as long as there are sound economic policies, population growth benefits economic development,” He wrote in a report on Tuesday.

“Human resources and talent resources are the most valuable resources.”