Lujiazui area in Shanghai Photo:Xinhua

Shanghai issued a 20-point measure to support private-sector investment on Tuesday, aiming to boost high-quality economic development.

The measures include providing fair market entry, offering preferential tax and fee policies, expanding financing channels and supporting private investment in scientific and technological innovation, Gu Jun, director of the Shanghai Municipal Development & Reform Commission, told a press conference on Tuesday. 

For example, efforts will be made to implement a unified market access system by breaking down invisible barriers. The city will also support private investment in major and key projects.

The measures called for more efforts to simplify licensing processes for gas, electricity and networks, implement preferential tax and fee policies, and reduce land costs.

Shanghai will expand financing channels for private enterprises and encourage financial institutions to support private investment projects, according to the official.

The city will also encourage private investment to participate in integrated circuits, biomedicine, artificial intelligence (AI), renewable energy, affordable housing, cultural and tourism projects, and rural revitalization.

This move shows that Shanghai will support private investment to engage more in high-tech, asset-light and innovative industries, which are a direction of the city's future development, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Tuesday.

"The measures will vigorously attract the participation of private capital in these sectors, driving the development of the economy of Shanghai as a whole," Xi said.

In recent years, private investment accounted for one-third of fixed assets in Shanghai. This type of investment is being restructured to meet the demand for high-quality development, with less money going into real estate and more into industrial investment and information technology, according to the Shanghai Municipal Development & Reform Commission.

It is increasingly becoming the backbone of national innovation industries and emerging industries such as AI, biomedicine, integrated circuits and the digital economy. 

In 2022, private enterprises accounted for more than 80 percent of Shanghai's newly recognized high-tech enterprises and 90 percent of the city's specialized new enterprises.

"We will continue to improve the policy package to support private investment in Shanghai with improved quality and efficiency, and give better play to the important role of private investment in promoting high-quality economic development," Gu said.

Private investment in Shanghai edged up 19.8 percent in the first four months year-on-year. The two-year average growth rate in the January-April period hit 1.1 percent.  

Global Times