Interim Measures of Shanghai Municipality for the Administration of Special Funds for Promoting High-Quality Industrial Development

Chapter I  General Provisions

Article 1 (Purposes and Basis)

With a view to promoting the in-depth transformation and upgrading of industries, continuously strengthening the leading role of high-end industries, building a modern industrial system, accelerating the advancement of new industrialization, cultivating and developing new quality productive forces, and consolidating and elevating the level of the real economy, thus providing a solid material and technological foundation for the construction of the "Five Centers", these Measures are formulated in accordance with the Budget Law of the People's Republic of China and relevant provisions on the management of public funds, and in light of the actual circumstances of this Municipality.

Article 2 (Definition)

The Special Fund for Promoting High-Quality Industrial Development of Shanghai (hereinafter referred to as the "Special Fund") is a dedicated subsidy fund established to implement national and municipal policies on strengthening the leading role of high-end industries, building a modern industrial system, accelerating new industrialization, and cultivating new quality productive forces. The Fund is designed to support and promote high-quality development of industries in this Municipality.

Article 3 (Funding Source)

The Special Fund shall be allocated from the municipal fiscal budget, in accordance with the specific requirements of the supported projects.

Article 4 (Principles of Use)

The use of the Special Fund shall comply with national and municipal industrial development policies and relevant fiscal budget management provisions. It shall adhere to the principles of openness, fairness, merit-based allocation, efficiency, and normative use, while establishing a sound full-process performance management system. The Fund is designed to leverage and guide additional investment through its catalytic role.

Article 5 (Responsibilities for Fund Management)

The Municipal Commission of Economy and Informatization (SMCEI) shall be responsible for preparing the Special Fund budget, determining its annual focus areas and key support priorities, conducting daily management, and implementing life-cycle management of projects funded by the Special Fund. SMCEI shall also supervise project implementation, conduct inspections, and carry out performance management of the Fund.

The Municipal Bureau of Finance (SMBF) shall be responsible for fiscal budget management of the Special Fund, oversee its use, and guide and promote its performance management.

Article 6 (Supervision Mechanism)

The allocation, disbursement, use, and management of the Special Fund shall be subject to audit supervision by auditing authorities in accordance with law, and shall proactively accept oversight from the Municipal People's Congress and the general public.

Chapter II  Scope and Methods of Fund Support

Article 7 (Key Support Areas)

Centered on the overarching goal of promoting high-quality industrial development, the Special Fund shall support the deep integration of advanced manufacturing and modern services, the digital and green transformation of industries, and the expansion of leading industries. It shall also facilitate the development of key industries, the cultivation of emerging sectors, and the layout of future-oriented industries, aiming to continuously enhance the resilience and security of industrial and supply chains and foster a world-class, high-end industrial ecosystem. The Special Fund shall primarily focus on the following areas:

1. Technological breakthroughs in key industrial areas. Support initiatives to align innovation chains with industrial chains, with a focus on core industries. Promote concentrated breakthroughs in core technologies, transitioning from isolated achievements to systemic, chain-based innovation. Enhance foundational industrial capabilities, strengthen the resilience of industrial chains, improve the integration capacity of major equipment, and bolster enterprises' technological R&D capabilities.

2. Integrated innovation and industrial convergence. Support the deep integration of advanced manufacturing and modern services, as well as the real economy and the digital economy. Promote industrial upgrading through industrial and service innovation, facilitate the demonstration and iterative upgrading of innovative products, and accelerate the emergence of new industries, models, and drivers. Foster innovation "detonation points" with transformative potential.

3. Enhancing high-End industrial supply capabilities. Support the accelerated transformation of innovation achievements into practical applications, enhancing the quality and efficiency of industrial development. Promote large-scale equipment upgrades and technological retrofitting, advancing high-end, intelligent, and green industrial development.

4. Optimization of the industrial ecosystem. Accelerate the establishment of a new type of industrial innovation network. Support the construction and services of open innovation platforms in key sectors, strengthen industrial infrastructure, and enhance specialized service capabilities of key industrial areas. Incentivize core enterprise teams, improve soft strengths such as technical standards, product quality, and intellectual property, promote innovation in manufacturing brands, cultivate new competitive advantages and growth drivers, and facilitate the development of industrial parks and clusters.

5. Other significant industrial projects explicitly supported by the CPC Shanghai Municipal Committee and Shanghai Municipal People's Government in line with major national strategic initiatives.

Article 8 (Support Methods)

The Special Fund may be provided in various forms, including grants, awards, government procurement of services, interest subsidies on loans, insurance premium subsidies, and financial leasing subsidies. Expenditures for routine operational costs of government departments shall not be covered by the Fund. Based on different stages of industrial development, the Fund will explore linked and rolling support mechanisms to promote full-chain advancement of technological breakthroughs and result application. For forward-looking and disruptive innovation projects, such as those in future industries, the Fund will explore mechanisms such as demand-driven project generation, full-process project manager responsibility, phased evaluation, and flexible dynamic adjustment.

Chapter III  Budget Management and Fund Disbursement

Article 9 (Budget Preparation)

SMCEI shall determine the priority areas of support for the following year in accordance with the requirements for departmental budget preparation. It shall prepare the annual budget for the Special Fund, integrate it into the SMCEI's departmental budget, and submit it to SMBF following the prescribed procedures.

SMBF shall determine the annual budget scale of the Special Fund based on factors such as SMCEI's annual work plan, the budget execution performance of the previous year, and the performance evaluation results from prior years.

Article 10 (Budget Execution)

SMCEI shall promptly prepare a project pipeline, establish a rolling project pool for the Special Fund, and arrange project expenditures in a reasonable manner in accordance with progress schedules.

Article 11 (Budget Adjustment)

Once the annual budget of the Special Fund is approved and issued, it shall be strictly enforced. If adjustments to the annual budget are deemed necessary during implementation, such adjustments shall be made in accordance with the relevant provisions for dynamic adjustment of municipal-level departmental budgets.

Article 12 (Fund Disbursement)

Based on the approved annual budget, SMCEI shall apply to SMBF for fund disbursement within the approved budget ceiling. Upon review, SMBF shall allocate the Special Fund accordingly.

Chapter IV  Supervision and Administration

Article 13 (Information Disclosure)

SMCEI shall disclose information on the use of the Special Fund to the public in accordance with relevant government information disclosure provisions and accept public supervision.

Article 14 (Performance Management)

SMCEI and SMBF shall implement comprehensive performance management for the Special Fund, promote the integration of budgeting and performance management, and establish performance targets, conduct performance tracking and evaluations, and apply the results of performance management effectively.

Article 15 (Supervision and Inspection)

SMCEI shall conduct whole-process supervision over the use of the Special Fund and the implementation of supported projects.

SMCEI and SMBF shall jointly conduct supervision and inspection of the Special Fund. Where necessary, qualified third-party institutions may be commissioned to assist in ensuring the compliance, security, and effectiveness of the Fund's operations.

Article 16 (Accountability and Sanctions)

The Special Fund must be used exclusively for its intended purposes; withholding or misappropriation of funds is strictly prohibited.

Any violations of national laws, rules, regulations, or relevant disciplinary provisions, such as falsification, fund withholding, or misappropriation, shall be handled in accordance with the Regulations on Penalties and Sanctions for Fiscal Violations, and disbursed funds shall be recovered.

Based on the integrity records of project units, SMCEI shall, in accordance with relevant provisions, submit negative credit records to the Municipal Public Credit Information Service Platform and impose corresponding restrictions at various stages of management depending on the severity of the dishonest conduct.

Chapter V  Supplementary Provisions

Article 17 (District-Level Support)

Each district may, based on its regional characteristics and actual industrial development needs, establish dedicated funds and formulate corresponding support measures to promote high-quality development of regional industries and enhance effective coordination between municipal and district-level industrial policies.

Article 18 (Right of Interpretation)

The interpretation of these Measures shall be the responsibility of SMCEI and SMBF.

Article 19 (Effective Date)

These Measures shall be effective as of April 27, 2025, and remain valid until April 26, 2027.

During the transitional period from October 27, 2024 to April 26, 2025, these Measures may be implemented by reference.