The Shanghai State-owned Assets Supervision and Administration Commission issued the administrative measures for real estate leasing by the State-owned enterprises under its supervision on July 1.

The new measures aim to strengthen transparency, improve flexibility, and help SOEs respond more effectively to market conditions.

Q1: What are the key changes compared with previous regulations?

A: A major feature of the new rules is the effort to balance standardization with flexibility.

To strengthen fairness and transparency, the measures standardize leasing plans and prohibit splitting properties or setting hidden barriers designed to circumvent public leasing procedures.

At the same time, the rules refine the management mechanisms for lease terms. Previously, single lease terms were generally capped at five years. Under the new framework, enterprises may now determine reasonable lease durations based on actual project needs, the depreciation cycle of fixed assets, and market conditions, while strictly preventing inefficient long-term leasing.

If the lease term exceeds five years, a corresponding price adjustment mechanism shall be established, and the matter shall be incorporated into the key collective decision-making process of the supervised enterprise or its authorized subsidiary group.

Q2: What are the methods and procedures for leasing SOE real estate?

A: For major leasing projects, tenants must be selected through public leasing on the designated platform. Enterprises supervised by the Shanghai State-owned Assets Supervision and Administration Commission, or their authorized subsidiaries, must negotiate and sign contracts based on the public leasing results and complete contract filing on the platform.

For general leasing projects, enterprises may organize the public leasing process themselves, but leasing information must be posted on the leasing platform for no fewer than five working days. Enterprises must negotiate and sign contracts in accordance with public leasing results.

Q3: How do the measures help strengthen Shanghai's commercial ecosystem?

A: The new measures introduce three targeted improvements:

1. Improving decision-making for long-term leases to strictly prevent inefficient asset use.

2. Enhancing mechanisms for rent and area adjustments in response to major market changes during the contract term.

3. Streamlining procedures for general leasing matters and reducing approval levels.

Together, these refinements give enterprises greater operational flexibility while maintaining strict compliance. They enable quicker responses to market demand, help reduce vacancies, improve asset utilization, and support the ongoing revitalization of Shanghai's urban commercial environment.

Source: Shanghai Municipal Development and Reform Commission