Shanghai unveils measures to support private investment

SHANGHAI -- China's financial hub Shanghai has introduced measures, including tax incentives and lower funding costs, to bolster private investment.

In the first four months of 2023, private investment in Shanghai grew 19.8 percent year on year, making a recovery from the lower base in the same period last year over COVID-19, Gu Jun, head of the Shanghai municipal development and reform commission, told a press briefing on Tuesday.

Measures include breaking down invisible barriers to guarantee unified market access for private enterprises and encouraging them to participate in major projects in the 14th Five-Year Plan period (2021-2025).

Authorities will offer tax incentives for micro, small, and medium-sized enterprises and scientific and technological innovation. Lower land costs would be ensured.

They will also help expand funding channels for private enterprises and guide financial institutions to support these projects with lower funding costs.

Private capital will be encouraged to invest in scientific and technological innovation projects and the integrated circuits, biomedicine, and artificial intelligence industries.

Private capital will also be encouraged to invest in digital infrastructures, including computing power and new and renewable energy.

Authorities also moved to stabilize private investment in the property sector and encourage private capital to invest in rural revitalization and social services, including health care and education.

"In the next step, we will solidly implement these measures to ensure private investment volume and quality and give better play to private investment in promoting high-quality economic development," Gu said.