Policy backing for private investment in Shanghai

The new policy will implement a unified market-access system that eliminates invisible barriers and supports private investment to take part in major projects. — China Daily

SHANGHAI: The municipal government of Shanghai has launched a 20-item policy on supporting private investment.

It is expected to eliminate invisible barriers, create a fair market environment and allow private investment to play an important role in promoting high-quality development of the broad economy, according to official sources.

Private investment makes up an important portion of the city’s overall investment.

The new measures seek to further promote the development of the private economy by creating a fair market environment, optimising the private investment environment, improving private investment financing services and expanding investment channels for the high-quality development of private investment, said Gu Jun, deputy secretary-general of the Shanghai municipal government, at a briefing.

Gu said that due to last year’s low base, Shanghai’s private investment surged 19.8% year-on-year in the first four months.

“With private investment showing recovery and improvement, we will manage the execution of the new policy to support the growth of private investment in both quality and quantity,” said Gu, who is also director of the Shanghai Development and Reform Commission.

In a bid to create a fair market environment, the new policy will implement a unified market-access system that eliminates invisible barriers and supports private investment to take part in major projects.

A certain amount of government procurement projects will be set aside for small and medium enterprises, according to the guideline.

“Private investment plays a very important role in Shanghai’s industrial investment, whose weight rose from one-eighth to one-seventh during the 13th Five-Year Plan (2016-20) period.

“The robust growth of private investment was maintained in the January-April period as private investment in industries soared 51% year-on-year, faster than the city’s overall industrial investment, indicating the vitality and vigour of Shanghai’s private industrial investment,” said Liu Ping, deputy director of the Shanghai Commission of Economy and Informatisation.

To optimise the investment environment for private capital, Shanghai is moving to improve service and raise efficiency by trimming procedures and cutting time for private investment projects, introducing preferential tax and fee policies, as well as lowering land use costs for enterprises, according to the new policy. — China Daily/ANN

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Business News

Australia job vacancies tumble from record levels in latest quarter
X CEO Yaccarino says Musk-owned platform could turn a profit next year
Dollar shines as oil surge spooks investors
Shares of China Evergrande suspended as chairman under police watch
US SEC nearing settlement with Wall Street firms over WhatsApp probe -sources
Holidays at home for record number of Chinese as economic slowdown bites
As shutdown looms, companies should go public 'before Friday' -US SEC chief
Capital A forms partnership with Garuda
Copper falls on firm US dollar, property worries
MAA proposes Budget 2024 incentives to include all xEVs

Others Also Read