Shanghai has issued a set of measures to strengthen direct financing and financial services for technology companies, outlining steps to deepen the pilot program for Qualified Foreign Limited Partner, streamline establishment approvals and foreign exchange services for foreign-invested fund managers, and facilitate cross-border investment.

The measures aim to attract high-quality overseas capital, help key Shanghai technology companies access domestic and overseas capital markets, and strengthen financial services throughout their development.

Encouraging more efficient use of foreign capital

Shanghai's QFLP program has attracted 108 participating institutions, with about 56 billion yuan ($8 billion) invested in China.

Shanghai will deepen the QFLP program and promote a model in which overseas capital is managed by domestic fund managers.

The city will explore ways of using offshore renminbi funds to support domestic technological innovation.

For mature and reputable foreign-invested fund managers, Shanghai will also streamline establishment approval procedures, facilitate foreign exchange conversion, and provide tax compliance guidance.

Expanding industrial capital investment

Leading enterprises in industrial chains and listed companies are encouraged to make corporate venture capital (CVC) investments.

CVC investors are encouraged to provide startups in upstream and downstream segments of industrial chains with capital, technology, and market resources. They may also help portfolio companies access overseas markets and financing, conduct strategic mergers and acquisitions, and pursue industrial integration.

Shanghai will also support CVC investors in establishing cross-border industrial funds jointly with Chinese enterprises operating overseas.

Improving investment links between primary and secondary markets

Shanghai will coordinate work related to overseas listings, support key technology companies in accessing domestic and overseas capital markets, and improve listing guidance while providing targeted capital market training and matchmaking services.

The city will also support the establishment of cornerstone investment funds and facilitate approval, filing, and foreign exchange procedures for their cross-border investment.

Strengthening technology M&A ecosystem

Shanghai will improve the transparency of review standards for listed companies acquiring technology companies and support the parties in negotiating transaction prices based on a range of valuation methods.

It will develop technology M&A case and valuation databases, encourage third-party acquisitions, and encourage domestic insurers to work with overseas institutions to develop and launch localized M&A insurance products.

Further reforming the STAR Market

As of July 20, 2026, Shanghai-based STAR Market companies had raised about 237.64 billion yuan through initial public offerings and had a combined market capitalization of about 3.08 trillion yuan.

Shanghai will promote STAR Market listings by companies in controlled nuclear fusion, embodied intelligence, large AI models, quantum computing, and brain-computer interfaces.

The scope of application of the fifth set of listing standard will be expanded to improve support for unprofitable companies in frontier technology sectors.

Facilitating refinancing for technology companies

The measures support technology companies in using additional share offerings, rights issues, convertible bonds, and other refinancing tools.

They also allow refinancing by companies that were listed under the standards for unprofitable firms and remain unprofitable, as well as by companies whose shares trade below their offering prices.

Deepening development of bond market's 'sci-tech board'

Shanghai companies have issued 156 sci-tech innovation bonds with a combined value of 228.2 billion yuan.

Shanghai will promote the implementation of risk-sharing tools for sci-tech innovation bonds and private enterprise bonds, as well as policy tools such as the National Financing Guarantee Fund. It will also encourage financial institutions to create credit risk mitigation instruments to support sci-tech innovation bond issuance.

Establishing a pilot zone for direct financing

Shanghai will establish a pilot zone based on its equity investment clusters, Zhangjiang Science City, and Grand NeoBay.

The zone will bring together capital, talent, technology, and information, providing financing services spanning concept validation, incubation and acceleration, and industrial scaling.

Note: The English text is for reference only. In case of any discrepancies, the Chinese version shall prevail.

Source: Financial Committee of the CPC Shanghai Municipal Committee