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