Press Release for Media Briefing of the Shanghai Municipal Government on January 18, 2022

2022.01.19

The Information Office of Shanghai Municipality held a municipal government press conference today (January 18) during which Hua Yuan, Deputy Secretary-General of the Shanghai Municipal Government and Director of the Shanghai Municipal Development and Reform Commission, gave a briefing on the “Several Policy Measures for Expanding Effective Investment and Stabilizing Economic Development in Shanghai in 2022.” Wang Huajie, Deputy Director of the Shanghai Municipal Development and Reform Commission, Liu Ping, Deputy Director of the Shanghai Commission of Economy and Informatization, Zhu Jianhao, Deputy Director of the Shanghai Municipal Commission of Housing and Urban-Rural Development, Wei Dong, Chief Engineer of the Shanghai Municipal Planning and Land Resource Administration Bureau, Wu Jie, full-time Deputy Director of the Lingang New Area Administration, and Zhang Lixin, Deputy Director of the Shanghai Municipal Housing Administration attended the press conference and answered questions from reporters.

In order to thoroughly implement the spirits of the Central Economic Work Conference and the Economic Work Conference of the CPC Shanghai Municipal Committee, actively expand effective investment, create a better investment environment, and stabilize economic development, the city has formulated “Several Policy Measures for Expanding Effective Investment and Stabilizing Economic Development in Shanghai in 2022” (hereinafter referred to as the “Policy Measures”).

I. Overall consideration

With joint efforts of all people in the city, on top of the high growth rate of 10.3% in 2020, Shanghai’s fixed asset investment is estimated to rise by about 8% year on year in 2021. The investment landscape is generally good, effectively contributing to the stable and healthy development of the economy and society. In 2022, in order to maintain the stable and healthy development of the economy, it is essential to ensure investment, and it is necessary to formulate targeted policy measures to reasonably expand effective investment.

In the process of policy research and formulation, we should focus on the following three aspects. First, we need to firmly grasp the general tone of the work on “seeking progress while maintaining stability”, and earnestly play the key role of effective investment. Second, we need to propose targeted policy measures by focusing on real situations in Shanghai, in a bid to strengthen basic supporting capabilities, continue to improve the city’s core functions, accelerate the cultivation of new growth drivers, and prioritize key areas that help deliver national strategies. Third, we need to continue to optimize the investment environment, step up efforts to serve enterprises, improve the convenience for investment and construction projects, strive to solve pain points and challenges in the investment process, create a better investment environment, and fully stimulate the vitality of social investment.

II. The main contents of the “Policy Measures”

The “Policy Measures” are divided into five areas, with 24 specific policy measures.

(1) There are 5 policy measures to speed up the construction of major projects.

First, the city will make every effort to implement the annual investment targets for major projects, arrange the investment plan for the city’s major projects in advance, refine the investment plan on a monthly basis, and give full play to the leading role of major projects in improving the levels of urban public services, driving economic and social development, and improving people’s livelihood. Second, the city will accelerate the development of projects under construction, establish and improve the “precisely targeted” service mechanism, form a project-centered work chain, and timely coordinate to address difficulties and challenges in the project construction process. Third, the city will improve coordination of planned new projects, streamline the approval management process for government investment projects, and innovate and optimize investment approval procedures. In the field of housing construction, the city will comprehensively implement the reform in combining the approval of feasibility study and preliminary design and continue to advance the pilot program by shifting from a three-phase (project proposal, feasibility study report, and preliminary design) approval process to a two-phase process in some key projects in urban infrastructure field. For municipal engineering and construction projects, in accordance with the actual situation of the projects and on the basis of ensuring stability of the overall plan, the city will adopt an approval system by stages (sections) for land supply and project construction. Fourth, the city will carry out infrastructure investment ahead of previous schedules in an appropriate manner, and speed up a batch of projects related to the city’s long-term development and safety, such as port areas, waterways, railways, metro, water conservancy, and underground pipelines. At the same time, the city will actively deploy “new infrastructure” projects represented by new networks, new facilities, new platforms, and new terminals. Fifth, the city will bolster the reserves of key projects, make good use of the key project bank for the 14th Five-Year Plan period, special debt project bank, and REITs project bank, continuously improve the quality of project reserves, and conduct preparatory work in a well-planned, careful and practical way.

(2) There are 4 policy measures to further provide funding support for projects.

First, the city will strengthen funding support from government financial resources. The city will coordinate and distribute municipal and district government budgets to ensure construction funding for government-invested projects. The city will issue 2022 municipal construction funding, land transfer funding, public transport special support funding, urban infrastructure support funding and other government special funding in advance. Second, the city will speed up the issuance and use of special bonds. By the first quarter, the city will ensure that it will wrap up issuance of local government special bonds in 2022 assigned by the Ministry of Finance in advance, while distributing funds to project units according to the schedule in a timely manner. The city will strive to complete issuance of all local government special bonds in the first half of the year. Third, the city will increase targeted supply of investment policies. The city will actively amplify municipal support to districts on key infrastructure projects in the 14th Five-Year Plan period, supporting policies for land transfer incomes in new cities, and 20 policies on real estate investment trusts (REITs) in Shanghai’s infrastructure sector, while giving play to the effectiveness of the policy system for construction, operation and financing for the metro network, and supporting policies for basic elderly care in the 14th Five-Year Plan period. The city will introduce policies to support construction of organic waste recycling facilities, key greening projects and initial rainwater storage projects in 14th Five-Year Plan period. Fourth, the city will improve the overall balance of resource factor quotas. The city will optimize overall quota allocation of six types of resources for major municipal projects, including land, water area, green space, forest land, waste soil disposal and housing for resettlement. The city will establish a new mechanism for the coordinated use of resource quotas by improving the depth of preliminary work, simplifying procedures, optimizing processes, and completing review within a pre-set timeframe.

(3) There are 4 policy measures to stimulate social investment momentum.

First, the city will comprehensively promote digital transformation. The city will make good use of the over 100-billion-yuan “new infrastructure” special credit project with preferential interest rates, and guide social capital to increase investment in “new infrastructure.” The city will accelerate the deployment and implementation of a number of major demonstration projects for new infrastructure in the fields of hospitals, smart factories, and smart transportation in the future. The city will coordinate the overall use of energy consumption quotas and strengthen efforts to ensure quotas for green data centers. Second, the city will develop and expand the levels of emerging industries. The city will leverage supporting policies for the integrated circuit industry and software industry in the new era, while implementing the special preferential credit policies for the integrated circuit and artificial intelligence sectors. The city will encourage market-oriented financing guarantee institutions to provide financing guarantee services for integrated circuit equipment and materials enterprises, and offer subsidies to cover part of guarantee fees for eligible enterprises. The city will deeply advance the implementation plan for the development of the new energy vehicle industry, and promote the planning and construction of hydrogen refueling stations across the city. The city will give full play to the leveraging and guiding role of special funds for technological transformation and venture capital guidance funds, and promote high-quality development of advanced manufacturing industries. Third, the city will accelerate the development of green and low-carbon energy. The city will introduce a new round of supporting policies for renewable energy and battery charging and swapping facilities, promote the comprehensive development of offshore wind power projects in the Hangzhou Bay area, and speed up the comprehensive development and utilization of “photovoltaics +” in various industries. The city will formulate and promote the delivery of implementation opinions and supporting policy measures for carbon peak and carbon neutrality ambitions, and actively guide social capital to enter the new green and low-carbon segments. Fourth, the city will strengthen the whole-life-cycle land management. The city will ensure solid management of transfer of industrial land and improve standards for industrial land. The city will comprehensively promote the high-quality utilization of industrial land, improve the transformation mechanism of existing industrial land, and optimize the performance supervision of industrial land throughout its life cycle. The city will accelerate urban renewal and renovation of old areas, raise funds to build a batch of affordable rental housing, and separately draft the land supply plan for affordable rental housing.

(4) There are 7 policy measures to create new space for urban development.

First, the city will support Pudong New Area to build a pioneer area of socialist modernization, accelerate the construction of an international financial asset trading platform, and create a world-class innovative industry cluster. The city will collectively initiate the construction of a number of major projects, continue to promote the construction of the Zhangjiang Comprehensive National Science Center and the third-phase expansion of the Bailonggang Wastewater Treatment Plant, and start the construction of the Pudong Comprehensive Transportation Hub. Second, the city will build the Lingang New Area of the Free Trade Zone to a high standard, make good use of the special development fund for the Lingang New Area of the Free Trade Zone, accelerate the building of an international data port, and deploy a number of core carriers and key projects. The city will advance the construction of Nanhui branch line (Lianggang municipal railway), the original water pipe of Lingang water plant, and the Lema River and new sea gate, SMIC Lingang Base, COMAC Final Assembly Center, the World’s Top Scientists Community, and Dishui Lake Financial Bay. Third, the city will build the Yangtze River Delta Integration Demonstration Zone to a high level, make good use of the special financial funds for the Yangtze River Delta Integration Demonstration Zone, and advance the construction of key projects for ecological, green and high-quality development in the demonstration zone. The city will promote the construction of the municipal railway demonstration area line, the “Water Village Living Room,” the Yuandang & Dianshan lake shoreline project, and promote the construction of a number of landmark industrial projects such as Huawei’s Qingpu R&D base. Fourth, the city will build a high-quality Hongqiao International Hub for Opening-up, focus on the “three major functions” on transportation, conventions/exhibitions, and commerce, build a high-standard international central business district, and promote the construction of supporting carriers. The city will start construction of the west traffic plaza platform, the Shenchang Road and Shenkun Road linking project, and the extension project of the medium-capacity bus route 71. Fifth, the city will promote the planning and construction of new cities from a high starting point, and increase support from municipal construction financial resources and municipal land transfer incomes to promote the development and construction of the new cities. The city will accelerate the implementation of a number of major infrastructure projects, social and people’s livelihood projects, and industrial projects in the new cities. Sixth, the city will create world-class waterfront space of “One River and One Creek,” continue to advance the improvement of the waterfront public space of Huangpu River and Suzhou Creek, accelerate the development of riverside areas such as North Bund in Hongkou and Qiantan in Pudong, make every effort to create new waterfront landmarks for public activities with their own characteristics, and actively improve the supporting service facilities for cultural tourism. Seventh, the city will speed up the transformation of the north and south areas, and will issue the implementation opinions and support policies for the transformation and development of the north and south areas. The city will support the development and construction of Wusong Innovation City, Nanda Smart City, and Binhai Area, support the in-depth adjustment of the second industrial zone in Jinshan District, and create the “2 for 2” transformation demonstration zone to improve the regional capabilities.

(5) There are 4 p0licy measures to continuously optimize the investment environment.

First, the city will launch a program to visit large-scale enterprises, thoroughly listen to their opinions, and focus on solving a number of bottleneck problems affecting the investment and development of enterprises. Second, the city will strive to create a high-quality market environment, by targeting industry leading enterprises of the “3+6” new industrial system, and attracting high-quality major industrial projects. Third, the city will optimize services for foreign investors. The city will give play to the role of the municipal service system for major foreign-funded projects, and increase the coordination and promotion for major foreign-funded projects. The city will significantly simplify the application and approval materials, and fully implement informative filings. Fourth, the city will continue to improve convenience for investment and construction. By relying on the one-stop online government services platform, the city will deepen the reform of the approval system for investment projects. The city will promote the reform of the “land list system” for social investment projects. The city will launch the commitment system for corporate investment projects on a trial basis, and will adopt the all-in-one mapping arrangement for construction projects. #