Supportive Opinions on Accelerating the Development of Modern Service Industry of Xuhui District (Provisional)

(16-04-2014)

To speed up transformation of economic development mode, promote economic restructuring, and improve comprehensive economic capacity of Xuhui in an all-round way, Xuhui District Government has purposefully constituted the “Supportive Opinions on Accelerating the Development of Modern Service Industry of Xuhui District (Provisional) based on the spirit of “Opinions on Further Improving Finance Mechanism & Standardizing Financial Support Policies of Neighborhood Communities”, i.e., No.77 Document (2008) issued by the Shanghai Municipal Government.

 
I. Guiding Principles
Xuhui District is to rigorously promote the development of advantageous segments of modern service industry and actively cultivate emerging service segments, forging the industrial layout with modern service industry as the leading player and adopting innovation-driven development mode. The guiding principles of this initiative are to expand scale, upgrade capacity, integrate & innovate, focus on characteristics, and cultivate brands. Economic development foundation and abundant resources of science, technology and culture shall be relied on. Key projects will serve as the handle while technological innovation will serve as support. 
 
II. Development Targets
Project construction in key development areas will be the carrier. The district will reinforce the guidance of planning, direction of capital and focus of policies so as to promote cluster development, integrated development and innovative development of modern service industry. During the “12th Five-year Plan Period,” the development of key segments of modern service industry in Xuhui District is obviously faster than the industrial growth speed overall, establishing and reinforcing its leading position of modern service industry in economy of the district. 
 
III. Major Tasks
The district will promote rigorously the development of information service, financial service, professional service, science & technology R&D service, cultural creativity, convention & exhibition and tourism service. Xuhui is to actively cultivate emerging service segments that can fully exert the resource advantages of the district and have great potentials for development. It is to continue with the cultivation and enhance the development of life health, international communication, education & training, and modern logistics. It is to rigorously develop headquarters economy, upgrade the capacity of modern commerce & trade, make service outsourcing bigger and stronger.  
 
Xuhui is to optimize and consolidate all special funds that support the development of modern service industry and increase investment in optimizing industrial structure, reducing business cost, promoting significant projects and improving industrial environment, etc. 
IV. Supporting Policies
(I). Financial Service Sector 
1. For headquarters of financial institutions such as securities and futures that have been approved by national financial regulatory authorities and been newly attracted to Xuhui, the district will offer no more than RMB5 million once and for all as award. For enterprises that build or buy offices for self use in Xuhui, the district will offer no more than RMB5 million once and for all. For enterprises that rent offices in Xuhui for self use, after validation, the district can offer 10-30% of the rental for five consecutive years as subsidy with total amount no more than RMB1 million. For city-level branches or subsidiaries of above-mentioned headquarters of financial institutions and financial leasing enterprises, the above-stated standards will be followed with half of the amount of awards or subsidies.     
2. For equity investment companies that are newly attracted to Xuhui as corporations or partnership enterprises, the district will offer certain award once and for all based on their total investment. For corporations whose total investment reaches RMB3 billion and above and partnership enterprises whose total investment reaches RMB5 billion and above, the district will offer no more than RMB15 million once and for all. The district will also offer subsidies for enterprises that rent offices for self use in Xuhui. For corporations with RMB500 million investment and above and partnership enterprises with RMB1 billion and above investment, the district will offer 10-30% of the rental actually paid for three consecutive years, with total amount no more than RMB1 million as subsidies.
3. For newly attracted financial institutions, equity investment companies and equity investment management companies, the district will provide comprehensive support to equipment procurement, product R&D, talents construction for six years maximum based on their output value, revenue and profits that contribute to local economy and society. 
4. For newly established financial warranty institutions, the district will offer no more than RMB500,000 reward once and for all based on 1‰ of their registered capital. For financial warranty institutions that serve guided enterprises in Xuhui, the district will offer no more than 1% of the warranty value of the year as subsidies to warranty business and no more than 1-1.5% of risk reserve subsidies. For banks that are involved, the district will offer no more than 1‰ as subsidies for their business. For institutions that offer financial warranty services for various key or innovative projects and have compensation losses, the district will offer subsidies for the actual compensation losses according to certain ratio.
5. For small loan companies that are settled in Xuhui, the district will offer no more than RMB2 million as risk serves based on 1% of their registered capital for three consecutive years and offer no more than 1‰ subsidies if the companies are involved in financial services for small and medium-sized enterprises in Xuhui.
6. For enterprises that are included in non-listed stock company equity transfer systems, the district will provide support based on 1:1 ratio and match with municipal support policies. The district will offer no more than RMB3 million subsidies for enterprises that go listing. For enterprises that are successful in equity transfer and go listing, the district will follow the standard of support capital for listed companies and no more than RMB3 million and offer balance subsidies based on actual situations. 
 
 (II). Information, Profession, Scientific Research, Cultural Creativity, Convention & Exhibition, and Tourism Service Sectors
1. For newly attracted enterprises that comply with the industrial development guidance of Xuhui, the district will offer no more than RMB5 million accumulative subsidies for office rental or decoration based on their contribution to economy and society of Xuhui. For newly attracted enterprises with obvious comprehensive advantages (except headquarters economy and financial institutions), the district will offer no more than RMB3 million subsidies once and for all after verification.  
2. For newly attracted key enterprises that comply with the industrial development guidance of Xuhui, the district will offer no more than five years of comprehensive support for their equipment procurement, product R&D and talent construction based on their output value, revenues and profits that contribute to economy and social development of Xuhui.   
3. For projects whose industrial construction or upgrading, public service platform, corporate informatization application and service system construction for small and medium-sized enterprises that have been listed as key projects of Xuhui’s modern service industry, the district will offer construction investment once and for all and operational subsidies for no more than three years based on their economic and social benefits.
(1) For industrialization construction or upgrading projects in key areas, the district will offer no more than 20% of their total investment of the projects as subsidies, with no more than RMB2 million subsidies for single project. For key projects that comply with industrial development guidance of the country and the city, the subsidies for single project will be no more than RMB5 million.
(2) For public service platform construction projects, the district will offer no more than 20% of their total investment as subsidies, with no more than RMB1.5 million subsidies for single project. For public service platform that operates normally, the district will offer no more than RMB500,000 subsidies for operation for single project after verification. 
(3) For corporate informatization application projects or service system construction projects for small and medium-sized enterprises, the district will offer no more than 20% of the total investment of the projects or the actual service fees as subsidies, with no more than RMB1 million subsidies for single project.  
4. Xuhui supports cultural creative enterprises in independent creation, product R&D, technical renovation, branding, marketing, foreign trade, industrialization of cultural creative achievements, construction of cultural communication channels, major awards and events, intellectual property right protection and service systems, etc. The district encourages cultivation of cultural creative studios and development of firms. The district encourages enterprises to set up design center or technical center. After verification, the district can offer no more than RMB2 million subsidies or rewards.
5. For enterprises that organize significantly influential exhibitions, trade fairs, expositions and high-end conferences in the region or in certain profession, the district will offer no more than 30% of the marketing and organization expenses for single project after verification, with total amount no more than RMB200,000. 
6. For travel agencies that organizes groups of travellers to Xuhui for sightseeing, shopping or other entertainment, the district can offer subsidies based on the number of travellers and marketing effect, with no more than RMB100,000 for individual travel agency annually. 
7. For enterprises that comply with the industrial development guidance of Xuhui, the district will offer RMB500,000 rewards once and for all if they are verified to have won the title of China Famous Trademark or China Famous Brand. For those winning the title of Shanghai Famous Trademark or Shanghai Famous Brand, the district will offer RMB100,000 rewards once and for all after verification.  
 
 (III). Commerce & Trade Service Sector
1. The district will offer no more than RMB5 million subsidies once and for all for construction and upgrading projects of shopping circles and shopping streets of the city or district level if only these projects comply with the development plan and play a leading role in Xuhui.
2. The district will offer no more than RMB3 million subsidies for neighbourhood communities and towns that take part in the construction, adjustment and upgrading of city-level characteristic streets, community business centers and community shopping streets based on actual investment of the neighbourhood communities and towns in Xuhui.  
3. For enterprises that offer offshore service outsourcing businesses and fall into the statistic category of Xuhui, the district will offer no more than RMB300,000 reward annually if their service outsourcing contracts are valued more than US$1 million. For enterprises that offer training for newly recruited employees, the district can offer no more than RMB100,000 reward based on actual training in the year. For enterprises that pass CMM verification in the year, the district can offer no more than RMB50,000 once and for all based on their CMM grade. For public platform construction projects that are related to International Trade Center, the district will offer certain amount of capital support after verification. 
4. For newly attracted enterprises that are engaged in retailing, domestic and foreign trade and other related industries, the district will offer no more than five years of comprehensive support to their equipment procurement, production R&D and talent construction based on the economic and social contribution from their output value, revenues and profits after verification. 
 
(IV). Headquarters Economy
1. For newly attracted headquarters of multinational companies, the district will offer no more than RMB5 million reward once and for all after they settle down in Xuhui. For verified national headquarters, the reward will be RMB5 million. For verified regional headquarters for investment, the reward will be RMB3 million. For verified investment companies, management regional headquarters and R&D center, the reward will be RMB1 million.  
2. For newly attracted headquarters of multinational companies that build or purchase office buildings for self use, the district will offer no more than RMB5 million subsidies once and for all. For those that rent office buildings for self use, the district will offer 10-30% of their actual rental as subsidies every year after verification, with total amount no more than RMB1 million in the first three years. In the next three years, the subsidies offered will be halved. 
3. For newly attracted headquarters of multinational companies, the district will offer no more than six years of comprehensive support to their equipment procurement, production R&D and talent construction based on the economic and social contribution from their output value, revenues and profits after verification.
 
(V). Others
1. For newly built office buildings with more than 10,000 square meters of construction space, functional departments of the district and the owner or operating entity will sign the interactive cooperation agreement on improving contribution ratio and ratio of tax paying in Xuhui. For owners or operating entities that reach the agreed targets, the district will offer no more than RMB5 million. For office buildings in operation with positive growth, the district can also refer to this standard in offering rewards.
2. For renovating and upgrading industrial parks engaged in culture, creativity and modern services, the district can offer 10% of their total investment as construction subsidies in phases, but no more than RMB3 million in total, if their industrial cluster degree and ratio of tax paying in Xuhui reach the ruled standards as verified. All industrial parks will be evaluated and rated with stars every year. For industrial parks that are granted with star certificates and start plates, the district will offer no more than RMB100,000 rewards every year to their operating entity.
3. For newly attracted associations of modern service industry and related service agencies of national and city level, the district will offer no more than RMB500,000 rewards once and for all once verified. For those that have signed strategic cooperation agreements with the district government, Xuhui will offer subsidies according to the agreements. 
4. For agencies that contribute significantly to attracting investment, serving enterprises and creating favourable industrial environment, the district will offer no more than RMB500,000 rewards once verified. 
5. For key enterprises engaged in modern services, the district will offer no more vcv v   vthan RMB1 million as subsidies to corporate bank loan interests every year based on their contribution to the economic development of xuhui. For key construction investment projects of new industrial parks that are verified or approved for construction by the country, the city or the district, Xuhui will offer no more than RMB5 million subsidies for their bank loan interests. For capital projects that are guided by the service industry, contractual energy management projects, corporate merge & acquisition projects, cultural creativity projects, upgrading of shopping circles and outlet renovation projects, the district will offer no more than RMB1 million subsidies for their bank loan interests. For enterprises that pay warranty fees to various warranty agencies, the district will offer no more than RMB900,000 subsidies each year.
6. For supportive policies on top-end talents, operating management talents and management teams in modern service industry of Xuhui, the district will refer to the “Implementation Opinions on Further Promoting Talent Development of Xuhui (Provisional)”. 
 
V. Appendixes 
(I). The Opinions are subject to the elaboration of the Commission of Commerce of Xuhui District. 
(II). The Opinions shall be followed when related policies implemented before are contradictory to the Opinions. New policies shall be followed if the country, Shanghai or Xuhui District promulgates new policies over the implementation stage of the Opinions. 
(III). For enterprises which enjoy the above-stated supportive policies but are qualified to enjoy national, municipal or other district policies, the principle will be that the highest level support shall be enjoyed without any overlap.   
(V). The Opinions shall be put into trial implementation on the date of its issuance.