Shanghai Weekly Bulletin

No.3, December 2024

Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People's Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.

Laws and Regulations

【National】

1. China to Strengthen Human Resource Services for Manufacturing Development

【Keywords: Human Resource Services; Manufacturing Sector】

The Ministry of Human Resources and Social Security (MOHRSS) and other four governmental departments recently issued the Guidelines on Strengthening Human Resources Services to Promote the High-quality Development of the Manufacturing Sector. The document aims to promote the integration of the human resources services sector and the manufacturing sector in eight aspects, including improving the mechanisms for the coordinated development, introducing more high-end talent to support advanced manufacturing, enhancing the employment services and carrying out professional training in human resources for the manufacturing sector.

Source: MOHRSS

2. China Integrates Expats' Work Permits with Social Security Cards

【Keywords: Work Permits; Social Security Cards】

The Ministry of Human Resources and Social Security (MOHRSS) recently issued the Circular on the Integration of Expats' Work Permits with Social Security Cards, requiring local human resources and social security departments to provide expats with services such as business information inquiries and collection of subsidies through physical or digital social security cards, or even make the social security card an all-in-one card based on local conditions. 

Source: MOHRSS

3. NFRA Issues Document for High-quality Development of P&C Insurance

【Keyword: Property and Casualty Insurance】

The General Office of the National Financial Regulatory Administration (NFRA) recently issued the Action Plan on Promoting the High-quality Development of the Property and Casualty (P&C) Insurance Sector by Strengthening Supervision, Preventing and Defusing Risks, and Advancing the Reform and Opening-up. The document calls for carrying out comprehensive regulatory actions, preventing and defusing risks, and promoting the reform and opening-up. It also stresses the need to improve the quality and efficiency of the sector in serving the real economy, and create a sound development environment.

Source: NFRA

【Shanghai】

1. Shanghai Issues Document to Support M&As and Restructuring of Listed Firms

【Keywords: Listed Firms; Mergers, Acquisitions and Restructuring】

The General Office of Shanghai Municipal People's Government recently issued the Shanghai Action Plan on Supporting Mergers, Acquisitions (M&As) and Restructuring of Listed Firms (2025-2027). The document outlines 11 measures, including shoring up weak links in the industrial and supply chains of new quality productive forces, promoting the transformation and upgrading of traditional industries, establishing a mechanism to identify M&A targets, strengthening M&A resource integration and post-investment empowerment, and introducing and establishing more M&A funds.

Source: Shanghai Municipal People's Government

2. Shanghai Supports Innovation-driven Development of Time-honored Brands

【Keyword: Time-honored Brands】

Shanghai Municipal Commission of Commerce and other four municipal departments recently issued the Guidelines on Supporting the Innovation-driven Development of Time-honored Brands. To support the innovation-driven development of time-honored brands, the document stresses protecting intangible cultural heritages, stepping up efforts in nurturing talents for brand inheritance, strengthening the protection of original sites, adopting innovative business models, and supporting the application of new technologies.

Source: Shanghai Municipal Commission of Commerce

One Week in Shanghai

【Latest News】

1. Shanghai Lists Top 50 Most Promising Startups for Investment in 2024

【Keywords: Most Promising Startups for Investment; Startups】

The list of "Shanghai's Top 50 Most Promising Startups for investment in 2024" was announced on December 10 at the Shanghai International Private Equity Forum. UniXell Biotechnology, together with 49 companies, made the list. 

Source:Shanghai Municipal Commission of Economy and Informatization

2. Charity Event "United for Shanghai: Lifeblood of a Caring City" Held

【Keyword: Charity Event】

The charity event "United for Shanghai: Lifeblood of a Caring City" took place at the Shanghai Blood Center on December 14, where more than 100 expats from 37 countries donated their blood. They are all from Bloodline, a non-profit organization dedicated to rallying expats for voluntary blood donations. 

Source:Shanghai People's Association for Friendship with Foreign Countries

3. Bamboo House in Shanghai Wins UNESCO Awards

【Keywords: UNESCO】

The winners of the 2024 UNESCO Asia-Pacific Awards for Cultural Heritage Conservation were announced on December 6, 2024. The Helou Pavilion Conservation Project, a bamboo house located in Fangta Park in Shanghai, won the Award of Merit and the Special Recognition for Sustainable Development.  

Source: Shanghai Tourism

4.  Shanghai Traffic Police Issues Temporary Driving Permit Application Guide

【Keyword: Foreign Nationals; Temporary Driving Permit】

The Traffic Police Corps of Shanghai Municipal Public Security Bureau recently released a bilingual Q&A document titled the Temporary Driving Permit Application Guide. The document covers eight questions about what a temporary driving permit is, its validity period, the types of vehicles that can be driven with it, and the application process. 

Source:Shanghai Traffic Police 

【Forum & Exhibition】

1. "Haichuang in Lingang" Innovation and Entrepreneurship Salon to Be Held

【Keyword: Low-altitude Economy】

The "Haichuang in Lin-gang" Innovation and Entrepreneurship Salon "the Seminar on Accelerating the Cultivation and Development of New Quality Productive Forces and Promoting the High-quality Development of the Low-altitude Economy", hosted by the Lin-gang Branch of the Shanghai Overseas Returned Scholars Association, will be held on December 20. The event includes a theme sharing session, the inauguration ceremony of the Legal Aid Service Station of the Lin-gang Branch, and visits to the "Going Global" Comprehensive Service Platform in Lin-gang Special Area and the Legal Aid Service Station of the Lingang Branch. 

Source: Shanghai Lingang

【Competitive Event】

1. F1 Announces Five-year Extension with the Chinese Grand Prix

【Keyword: Racing】

Shanghai Jiushi (Group) Co., Ltd. and Formula 1 (F1) have jointly announced the extension of their partnership for the F1 Chinese Grand Prix from 2026 to 2030. F1 will celebrate its 75th anniversary in 2025, and the F1 Chinese Grand Prix 2025 will take place at the Shanghai International Circuit from March 21 to 23. 

Source: F1 Chinese Grand Prix

【Culture & Art】

1. 7th "Show Life - Shanghai International Musical Festival" Kicks off 

【Keyword: Shanghai International Musical Festival】

The 7th "Show Life - Shanghai International Musical Festival" opened at Shanghai Culture Square on December 11, 2024. As in previous years, the festival includes four major sections: one season of performances, one development plan, one forum, and one major event, collectively covering various aspects of the musical theatre industry. 

Source: Shanghai Huangpu

2.  Exhibition Commemorating the 130th Anniversary of Zhou Xinfang's Birth Opens 

【Keyword: Zhou Xinfang】

A two-month exhibition commemorating the 130th birth anniversary of traditional Chinese opera maestro Zhou Xinfang opened on December 12, 2024 at the Shanghai Library East. Divided into four sections, the exhibition showcases over 200 precious video materials and nearly 80 artifacts, providing a comprehensive overview of Zhou Xinfang's artistic life.

Source: Shanghai Art Research Center

3. V MUSE Jewelry Collection Exhibition to Open Soon 

【Keyword: V MUSE】

To celebrate the 60th anniversary of the establishment of diplomatic relations between China and France and to welcome the arrival of the new year, the Awakening: V MUSE Jewelry Collection Exhibition will be held at the Shanghai History Museum from December 28, 2024 to May 5, 2025. The exhibition will present 110 exhibits from home and abroad through four chapters, namely God of Small Things, Flowing Feast, Flowers of Deep Time, and Moments of Glory.

Source: Shanghai History Museum

【Corporate Activities】

1. Bio-Techne Inaugurates Its R&D, Production and Logistics Center in Shanghai 

【Keyword: Bio-Techne】

Bio-Techne held on December 10, 2024 an opening ceremony to inaugurate its R&D, production and logistics center in Shanghai. With a total investment of 83 million yuan and a total floor area of 5,626.88 square meters, the center includes a 2,200-square-meter Class A cGMP clean workshop. It is Bio-Techne's only production base in the Asia-Pacific region.

Source: Minhang Today

2. Aginode Inaugurates Its Asia-Pacific Manufacturing and R&D Center

【Keyword: Aginode】

Aginode has recently inaugurated its Asia-Pacific Manufacturing and R&D Center in Nanxiang Town, Jiading District. The project is expected to generate an annual output value of 450 million yuan. In addition to serving the Chinese market, the new facility will also be a strategic export hub for Aginode to support business development in Asia, the Middle East and other countries. Moreover, it will purchase high-quality products made in China to support business expansion in Europe.

Source: Shanghai Jiadin

Q&A

1: Officials with the Ministry of Human Resources and Social Security (MOHRSS) answered press questions regarding the Guidelines on Strengthening Human Resources Services to Promote the High-quality Development of the Manufacturing Sector - What policy innovations have been made in the policy document?

A：It is the first dedicated document to promote the integration of the human resources services sector and the manufacturing sector. It proposes many innovative measures in policy design and work arrangements, which are reflected in the following aspects: First, it serves the major strategy of building a strong manufacturing powerhouse and gathers human resources services to drive high-quality development of the manufacturing sector. Manufacturing is the bedrock of a nation, essential for its existence and prosperity. Building a strong manufacturing powerhouse is an important strategic decision made by the CPC Central Committee. High-quality development of the manufacturing sector requires the human resources services sector to provide professional support with higher efficiency, strengthen policy coordination under the mechanism of the inter-ministerial joint conference on the development of the services sector, and promote coordinated development of human resources and the real economy. Second, we should adhere to the problem-oriented approach and solve the prominent challenges that restrict development. To address tough problems such as the difficulty in recruiting and retaining employees in the manufacturing sector, the structural imbalance between supply and demand, the poor ability in human resource management of small and medium-sized enterprises, and the lack of international human resource service support, we should give full play to the professional advantages of human resource services institutions and improve human resource services in the manufacturing sector. Third, we should enhance coordination of the modern industrial system to promote employment. Manufacturing is an important area for absorbing employment and developing human resources. We should optimize human resources services to support high-quality development of the manufacturing sector and strengthen the real economy, so as to drive reasonable job growth and effective improvement of job quality. Fourth, we have proposed a series of innovative and targeted measures to address the urgent need for integrated development, such as carrying out integrated development pilot projects, supporting the establishment of innovation consortia and recruitment & employment consortia, providing greater support and incentives for the professional title evaluation of human resources management, and promoting AI empowerment, so as to promote efficient collaboration between the human resources services sector and the manufacturing sector.

Source:MOHRSS

Expert Perspective

A Brief Comment on the Revisions to the Measures for the Administration of Strategic Investment Made by Foreign Investors in Listed Companies

By Guo Kejun, Wei Haitao, Miao Yuqian, Ding Wei (Zhong Lun Law Firm)

[Continuing from the Last Issue]

I. Highlights of the Revised Measures

(4) Relaxing requirements on shareholding ratio and lockup period

According to Article 5 of the original measures, foreign investors conducting strategic investment in A-share listed companies are required to hold at least 10% of the company's issued shares upon completion of the initial investment to meet the requirements for "strategic" investment. In cross-border share swap transactions, foreign investors are usually unable to determine the equity ratio after the swap, so they cannot guarantee that they can meet the requirement of holding no less than 10% of the shares. The above requirement has also become an obstacle to cross-border restructuring transactions of many listed companies. 

Article 5 also stipulates that A-shares of listed companies acquired by foreign investors through strategic investment cannot be transferred within three years to meet the requirements of "medium and long-term" investment. Compared with the lock-up period applicable to domestic investors, the lock-up period requirements for foreign investors are more stringent, which means that many foreign investors cannot require listed companies to pay cash consideration in related transactions, and that reduces the flexibility of listed companies' mergers and acquisitions and restructuring transactions.

This revision has maintained the principle stipulated in the original measures that strategic investment should have "medium- and long-term investment attributes", adjusts the lock-up period for foreign investors' holdings from no less than three years to no less than 12 months, cancels the shareholding ratio requirement for strategic investment in the form of private placement, and reduces the shareholding ratio requirement for strategic investment implemented by agreement transfer or tender offer from 10% to 5%.

It is important to note that strategic investments, implemented in whatever forms, must comply with relevant laws and regulations. If other regulations (such as the Securities Law of the People's Republic of China, the Measures for the Administration of Acquisition of Listed Companies, and the Measures for the Administration of Registration of Securities Issuance by Listed Companies) have required longer lock-up periods, such requirements must be complied with. Besides, in order to maintain the stability of investment relations and protect the interests of investors in the securities market, foreign investors who have made strategic investments should continue to abide by the 3-year lock-up period requirement in accordance with their original commitment and the original measures. 

[To be Continued]