The Information Office of Shanghai Municipality held a press briefing on the afternoon of yesterday (May 30). Gu Jun, deputy secretary-general of the Shanghai Municipal Government and director of the Shanghai Municipal Development and Reform Commission, introduced the details of the “Several Policies and Measures for Shanghai to Increase Efforts to Support the Development of Private Investment.” Ruan Qing, deputy director of the Shanghai Municipal Development and Reform Commission, Liu Ping, deputy director of the Shanghai Municipal Commission of Economy and Informatization, Guan Xiaojun, deputy director of the Shanghai Municipal Financial Regulatory Bureau, Wang Jianming, vice chairman of the Shanghai Municipal Federation of Industry and Commerce, and Zheng Changlin, chief economist of the Shanghai Municipal Finance Bureau, attended the press briefing and answered questions from reporters.Private investment is an important part of the investment for entire society. In order to thoroughly implement the decisions and arrangements by the CPC Central Committee, the State Council, the CPC Shanghai Municipal Committee, and the Shanghai Municipal Government, and further promote development of the private economy and private investment, the Shanghai Municipal Development and Reform Commission formulated the “Several Policies and Measures for Shanghai to Increase Efforts to Support the Development of Private Investment,” covering four aspects and 20 policies. The Policies and Measures have been officially issued after gaining the approval from the Shanghai Municipal Government. 1. Striving to eliminate invisible barriers and foster fair market access With a focus on promoting fairness and boosting confidence, three measures are introduced:First, the city will implement a standardized market access system. It will resolutely eliminate invisible barriers, further emphasize the areas not included in the national negative list for market access, and support private enterprises to enter and invest on an equal footing in accordance with the laws. Regarding service standards, all business-related matters will be free from vague provisions. To streamline the procedures for enterprise access, the city will initiate a pilot reform in the Pudong New Area. Under this reform, businesses will be able to obtain their licenses and commence operations by simply submitting a written commitment along with the necessary documentation. Second, the city will support private investment to participate in major projects. We will encourage private capital to actively engage in the 102 major projects outlined in the national 14th Five-Year Plan, as well as the major projects specified in Shanghai’s 14th Five-Year Plan. Private enterprises that contribute to the design, construction, supply of raw materials, and provision of facilities and equipment for these projects will be given equal opportunities in the bidding process. Third, the city will enhance the role of government investment as a catalyst. We will effectively utilize the regulatory power of financial budget and progressively allocate a larger portion of government procurement projects to small and medium-sized enterprises, exceeding 40% of the total share. In the realm of government investment bidding, we will fully implement letters of guarantee (insurance) to replace cash deposits for bid submissions, contract fulfillment, and ensuring project quality.2. Striving to improve service efficiency and optimizing private investment environmentWith a focus on improving services and efficiency, six measures are introduced:First, the city will expedite the preliminary work for private investment projects. Our primary focus will be on the initial stages of private investment projects and construction. We will effectively utilize the latest advancements achieved through the reform of the review and approval system in the field of construction projects in Shanghai. Furthermore, we will diligently implement reform measures such as prioritizing pile foundations, integrating multiple measurements, and adopting the project land list system, which have been warmly welcomed by enterprises. We will also actively promote the implementation of new reform initiatives, such as facilitating joint applications for water, electricity, gas, and internet installations. These measures aim to streamline procedures, reduce timelines, and enhance efficiency in the execution of private investment projects.Second, the city will enforce favorable tax and fee policies. We will consider the policy requirements for economic activities carried out by a large number of micro, small, and medium-sized enterprises. Our objective is to effectively implement a range of national tax and fee preferential policies, ensuring that the implementation of tax policies supporting these enterprises and fostering technological innovation remains uncompromised.Third, the city will reduce the cost of land for enterprises. The pricing of industrial land will be managed with a bottom-line principle. The minimum price for industrial land will be determined based on the nationwide standard for the lowest price of industrial land transfer. The minimum price for land designated for research and development (R&D) purposes will be established using the benchmark land price for R&D in the city. The city will actively support private investment in the revitalization and enhancement of existing industrial parks. Fourth, the city will reduce the cost of accessing municipal utilities. In line with urban planning and construction land regulations, we will steadfastly enforce a “zero burden” policy concerning water and electricity access for users situated outside the restricted construction areas.Fifth, the city will foster a cooperative and transparent relationship between the government and businesses. We will establish and refine a regular communication mechanism to facilitate ongoing dialogue between the government and the business community. Leaders at all levels will actively address issues and tackle practical challenges faced by private enterprises through thorough research and analysis. Moreover, the city will prioritize the improvement and strengthening of a mechanism that upholds the government’s commitments.Sixth, the city will promote an entrepreneurial spirit. We will encourage private enterprises to strive for excellence and recognition as advanced collectives and individuals in Shanghai’s key project practical merit competitions. The city will conduct regular evaluations to select and highlight outstanding private enterprises and entrepreneurs. We will bolster publicity efforts and media coverage to create a vibrant atmosphere that inspires and motivates private enterprises to thrive and make significant contributions.3. Striving to strengthen factor guarantees and improve services for private investment and financing With a focus on more convenience and faster speed, four measures are introduced:First, the city will enhance the sharing and utilization of enterprise credit information. In the city’s 41 key areas of law enforcement, special credit reports for market players will be implemented, replacing the need for presenting proof of illegal records. Moreover, the city will actively facilitate the implementation of the public credit information data chain project, aiming to achieve a streamlined process where “one application leads to simultaneous updates.”Second, the city will expand the financing opportunities available to private enterprises. We will rejuvenate existing private investments and provide support for the expedited issuance of Real Estate Investment Trusts (REITs) in sectors such as affordable rental housing, industrial parks, and consumer infrastructure. Additionally, we will bolster reinvestment capabilities. Furthermore, the city will extend its support to private enterprises looking to establish asset management companies in Shanghai. This initiative aims to facilitate the integration and optimization of assets from various regions, enabling their full revitalization through infrastructure REITs.Third, the city will leverage the full potential of government financing guarantee institutions. We will take steps to strengthen the credit enhancement capabilities of municipal government financing guarantee institutions and gradually increase the first loan rate for private enterprises. Moreover, the city will work towards optimizing and enhancing the assessment mechanism of district-level government financing guarantee institutions.Fourth, the city will provide guidance to financial institutions in order to encourage their support for private investment projects. We will promote financial institutions to back private investment projects, foster the development of innovative financial products and services, and work towards stabilizing and potentially reducing the average financing costs for private enterprises.4. Striving to expand investment channels and guide high-quality development of private investmentWith a focus on promoting innovation and optimizing structure, seven measures are introduced:First, the city will foster support for private investment in technological innovation. We will actively encourage private capital to participate in the development of national innovation centers and innovation platforms, while also undertaking significant national scientific and technological strategic tasks. Our aim is to guide private investment towards identifying their role in high-quality development initiatives. Furthermore, the city will provide support and encouragement to private enterprises that possess technological advantages, empowering them to engage in international competition. Second, the city will enhance its support for private investment in the three major industries. We will diligently implement various funding subsidy policies related to these industries and actively guide private enterprises to deeply engage in the development of the integrated circuits, biomedicine, and artificial intelligence sectors. Additionally, the city will strive to provide a comprehensive range of professional services. To achieve this, we will maximize the service capabilities of the Yangtze River Delta Sub-center of the Center for Drug Evaluation, strengthening guidance on the registration and applications of new drugs and devices for private enterprises. We will also incorporate the progress and activities of private enterprises into the “white list” for research and development projects in the city, as well as the joint supervision mechanism for special items entering and leaving the country, thereby enhancing customs clearance efficiency. Furthermore, we will coordinate the investment of high-performance computing resources by the city government to provide inclusive computing power support for private enterprises.Third, the city will encourage private capital to invest in new infrastructure. Our focus will be on promoting reforms that stimulate demand for smart computing power and smart storage. We will urge government departments to lease designated computing power for private investment, thereby supporting the implementation of specialized applications like big semantic learning, metaverse, and space-time base mapping. Furthermore, the city will extend its support to small and medium-sized enterprises, enabling them to access computing power and storage resources through the utilization of innovation coupons. Fourth, the city will enhance support for private investment in the field of green development. In particular, for renewable energy and new energy development projects that have attracted significant private investment in recent years, we will provide further clarity on policies, including financial subsidies, to encourage greater private participation in such projects.Fifth, the city will work towards stabilizing private investment in the real estate sector. Our focus will be on ensuring the successful completion of building projects, safeguarding the well-being of the people, and maintaining stability in the market. The city will actively encourage private investment to participate in various initiatives, including the revitalization of sporadic old buildings, comprehensive renovation of aging housing complexes, rejuvenation of urban villages, and the construction and operation of affordable housing.Sixth, the city will encourage private investment in social and people’s livelihood services. In sectors such as healthcare, education, culture, and sports, the city will take steps to relax quota restrictions on social medical equipment. Additionally, a new set of subsidy policies will be developed to support the construction of non-profit private college-based training centers. The city will also utilize relevant special funds to provide support for private investment in cultural and creative industries, as well as cultural, sports, and tourism projects.Seventh, the city will foster private investment in rural revitalization efforts. Particularly, we will prioritize the development of Chongming as a world-class ecological island and encourage private enterprises to invest in various ecological industries.