Exhibitors and merchants walk into the exhibition hall of the 8th Kashgar Central&South Asia Commodity Fair in Kashgar, northwest China's Xinjiang Uygur Autonomous Region, June 28, 2012. The fair opened on June 28 and will last for 5 days with thousands of exhibitors and visitors.(Xinhua/Cao Zhiheng)

The eighth Kashgar Central and South Asia Commodity Fair kicked off Thursday in Kashgar, an important ancient Silk Road town in northwest China's Xinjiang Uygur autonomous region.

The five-day trade fair has attracted more than 10,000 businessmen and delegates of trade and commerce associations, including those from south and central Asian countries such as Pakistan, Iran and Kyrghyzstan, according to the organizers.

This year's fair is estimated to clinch 40 billion yuan (about 6.3 billion U.S. dollars) in contracts on investment in Kashgar's mining, new energy, tourism, agriculture sectors, an increase of nearly 20 percent compared to that of the previous year.

The first Central and South Asia Economic Cooperation Forum will also be held during the fair. Experts, scholars, and businessmen will discuss ways to develop the Kashgar economic zone and further improve the investment environment in Kashgar.

The State Council, China's cabinet, announced in October 2011 a plan to set up a economic zone in Kashgar, providing it with 10 categories of favorable policies ranging from tax exemptions, subsidized electricity and transportation, low-interest loans for infrastructure to development of better rail and air links with neighboring countries.

The annual trade fair was first held in 2005, and has since become one of the most important international trade fairs held in Xinjiang.