A large thermal-power plant was installed and uses coal brought by rail from Fengcheng to the south.A machinery industry also grew up, at first mainly concentrating on the production of agricultural equipment and diesel engines.
Located in the north-central part of the province, it is bounded on the west by the Jiuling Mountains, and on the east by Poyang Lake.
Because of its strategic location connecting the prosperous East and South China, it has become a major railway hub in Southern China in recent decades.
After the conquest by the Song regime in 981 it was reverted to the name Hongzhou.
In 1164 it was renamed Longxing prefecture, which name it retained until 1368.
During the reign of the Wanli Emperor of the Ming dynasty, it housed relatives of the emperor who had been exiled because they were potential claimants of the imperial throne, members of the imperial family constituting about one quarter of the city's population; as a result of this, Matteo Ricci came here when trying to gain entry to Beijing.
In the 1850s it suffered considerably as a result of the Taiping Rebellion (1850–64), and its importance as a commercial centre declined as the overland routes to Canton were replaced by coastal steamship services in the latter half of the 19th century.At the end of the Yuan (Mongol) period (1279–1368), it became a battleground between Zhu Yuanzhang, the founder of the Ming dynasty (1368–1644), and the rival local warlord, Chen Youliang.At the beginning of the 16th century it was the power base from which Zhu Chenhao, the Prince of Ning, launched a rebellion against the emperor.In 653 the Tengwang Pavilion was constructed, and in 675 Wang Bo wrote the classic "Tengwang Ge Xu", a poetic introductory masterpiece celebrating the building, making the building, the city, and the author himself known to literate Chinese-speaking population ever since.In 959, under the Southern Tang regime, Nanchang was made superior prefecture and the southern capital.Annual precipitation stands at around 1,610 mm (63 in); with monthly percent possible sunshine ranging from 23 percent in March to 60 percent in August, the city receives 1,832 hours of sunshine annually in average.