Shanghai encourages development of non-public economy

The government of Shanghai municipality recently released opinions on implementing Some Opinions of the State Council on Encouraging, Supporting and Guiding the Development of Private and Other Non-Public Economic Sectors. According to the opinions, non-public capitals are encouraged to develop scientific and technological enterprises, modern service industry and social undertaking, to enter basic infrastructures and public utility, to invest in agriculture and participate in strategic adjustment of state-owned economy. The non-public capitals are allowed to enter all industries including resource monopoly industries as long as law and regulations do not restrict them from doing so. The limit on stock proportion for non-public capitals is eased too.

In regard to encouraging non-public capital to developing modern service industry and social undertaking, non-public capitals can invest in building high-quality colleges and developing non-diploma training; they can actively found non-public educational funds and study the possibility to trust private educational management organs to manage public schools through invitation for bid.

Non-public capitals are permitted to develop cultural and sports enterprises that are engaged in production and circulation of film and television and entertainment. Qualified enterprises are eligible to enjoy preferential tax policy. Intangible capitals such as individual's reputation, qualification of manager can be used to set up cultural enterprises at evalutated price.

Non-public capitals are allowed to participate in restructuring of public medical institutions that are not in the frame of basic medical service, establish welfare medical organs or operational medical organs , medical investment company, hospital management company and medical group. They can carry out research and suggest supporting measures for non-public capitals' involvement in public hospitals' restructuring.

Shanghai will further strengthen financial support for non-public enterprises, encourage financial institutes at all levels to improve proportion of loans to SMEs, expand criteria for mortgage loan for non-public enterprises, and study the possibility to mortgage intangible assets like technical patent for loans.

By People's Daily Online