Original Title: Several Measures (Trial) of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone to Support Industrial Transformation and Upgrading

To thoroughly implement the “Several Opinions on Promoting the Efficient Allocation of Resources and Driving High-Quality Industrial Development in the Municipality” (Shanghai Municipal Government Document [2018] No. 41), the “Several Opinions on Comprehensively Promoting the High-Quality Utilization of Land Resources in the Municipality” (Shanghai Municipal Government Regulation [2018] No. 21),the “Implementation Rules on Promoting High-Quality Utilization of Industrial Land in Shanghai (2020 Edition)” (Shanghai Planning and Natural Resources Land Use [2020] No. 351),the "Several Provisions on Strengthening the Management of Industrial Land Concessions in Shanghai" (Shanghai Planning and Resources Regulation [2021] No. 6), and other relevant documents, to further enhance the intensive use of land in the Lingang New Area, with a focus on innovation-driven development to improve quality and efficiency, revitalize existing resources, accelerate the restructuring of industries, and actively explore market-oriented operational mechanisms; to encourage and stimulate the initiative of various entities, mobilize all relevant forces,make full use of various resources, focus on improving the input-output efficiency of industrial land, and guide high-quality industrial development, this policy is hereby formulated.

I. Scope of Application

These measures primarily apply to the revitalization, industrial restructuring, upgrading, and secondary development of existing industrial, warehousing, and R&D projects within the Lingang New Area.

II. Basic Principles

(1) Industrial Upgrading

Strengthen the overall industrial upgrading of the region and optimize the functional positioning and spatial structure of different industrial zones. In accordance with the requirements of industry-city integration and industrial cluster development, ensure rational layout within the zones, maintain an overall balance between land costs and returns, and upgrade the overall quality of the industrial zones.

(2) Enhancing Benefits

Fully leverage the decisive role of the market in resource allocation. Comprehensively apply policies and regulations related to industry, land use, environmental protection, finance, market supervision, and workplace safety to accelerate the revitalization of existing spaces and attract projects characterized by strong technological innovation, significant development potential, and high economic returns.

(3) Green Development

Strictly enforce entry criteria; transformation and upgrading projects must align with the direction of high-quality development, adhere to the principles of green development, and conform to the “7+5+4” industrial development positioning of the new zone.

(4) Scientific Coordination

Strengthen the New Zone Management Committee’s overall coordination of efforts to revitalize existing space; ensure that local governments in each town fulfill their primary responsibilities and that development companies fulfill their collaborative responsibilities; conduct scientific evaluations of transformation and upgrading projects to promote coordinated development.

III. Areas of Support

1. Support the introduction of new high-quality projects into existing underutilized land;

2. Support development companies or social entities with industrial resources in acquiring property holdings (including through acquisition, merger, equity transfer, investment partnerships, and operational cooperation) to enhance the efficiency of existing projects;

3. Support original project owners in renovating or redeveloping existing properties to improve quality and efficiency.

IV. Implementation Measures

(1) Supporting the Integration of High-Quality Projects into Idle or Low-Efficiency Existing Sites

For existing idle or underutilized projects, integrate high-quality new projects that align with industrial policies. Encourage customized renovation and expansion of properties to accommodate these high-quality projects, and provide support in areas such as renovation and expansion, increasing floor area ratio, and expanding underground space. After agreeing on industrial access requirements, sign a supplementary land grant contract and incorporate the project into full lifecycle management.

(2) Encouraging Platform Companies and Leading Enterprises to Participate in Transformation and Upgrading

High-quality platform companies or leading enterprises are encouraged to participate in the acquisition and secondary development of low-efficiency projects in the new zone. Projects that meet industrial access criteria may be subject to the relevant municipal policies for platform companies and leading enterprises.

(3) Supporting State-Owned Capital-Controlled Platforms in Accelerating the Revitalization of Existing Assets

We encourage various state-owned capital-controlled platforms to collaborate across different zones within the New Area. We support the acquisition and revitalization of underutilized existing projects or land through various means (such as property rights transfers, equity acquisitions, joint development, and participation in judicial auctions), as well as the renovation or redevelopment of property assets, to provide high-quality property support for the establishment of premium industrial projects.The Management Committee is responsible for coordinating and balancing funding subsidies, providing a one-time subsidy equivalent to 25% of the land price differential (the actual acquisition price minus the average land transfer price in the area), with a cap of 300,000 yuan per mu.

(4) Support for the Renovation and Expansion of Existing Projects

For existing industrial, warehousing, and R&D land-based projects that align with the New Zone’s industrial orientation, if they need to expand production or increase capacity on their existing land to meet their own development needs and can significantly improve land efficiency, they will, upon approval, receive priority support in areas such as renovation and expansion, increasing floor area ratio, and adding underground space. No additional land premiums will be charged for industrial or warehousing land.

(5) Support for the Conversion of Low-Efficiency Projects into Standardized Factory Space for Lease

Upon review and approval by the New Zone Transformation and Upgrading Leading Group, holders of low-efficiency projects will be supported in converting their original industrial properties into high-grade standard factory buildings by paying supplementary land transfer fees based on market appraisal values. These properties shall be leased only and not sold; they may be leased to industrial projects that meet the New Zone’s project eligibility criteria. After signing a supplementary land contract, they will be incorporated into the land’s full lifecycle management.

(6) Supporting the Quality Improvement and Efficiency Enhancement of Rental Properties

Support will be provided to enhance the efficiency of self-held rental properties. High-quality operators will be encouraged to participate in investment promotion and operations in accordance with the New Zone’s industrial standards and guidelines. Properties will undergo comprehensive evaluation based on factors such as business mix, output value, revenue, tax contributions, and environmental performance. Upon certification, support will be provided in accordance with policies for technology incubation facilities.

(7) Fiscal Support Policies

In accordance with the "Implementation Opinions on Loan Interest Subsidies for Key Enterprises in the Lingang New Area," eligible projects that meet the criteria will be supported in accessing loan interest subsidy policies.

V. Supervision and Management (Full Life Cycle Management)

The Management Committee of the New Area shall coordinate and organize relevant departments to fulfill their joint regulatory responsibilities throughout the full lifecycle of land use. All transformation and upgrading projects shall be incorporated into full lifecycle management. Management requirements concerning public infrastructure provision, industrial performance, environmental protection and energy conservation, real estate transfers, and land withdrawal for land renewal projects shall be incorporated into the supplementary land use right grant contracts.

Relevant departments of the New Area shall incorporate the management requirements specified in the land use right grant contracts and the status of their implementation into the renewal information system, and achieve full-lifecycle management of renewal projects through information sharing and collaborative supervision.

For existing industrial land where full-lifecycle management requirements have not been stipulated, supplementary contracts may be signed to refine provisions regarding industrial performance and land exit mechanisms. A joint supervision mechanism involving land, industry, and market regulatory departments regarding land-related equity transfers shall be established. The construction of an enterprise integrity system shall be promoted, and enterprise integrity information shall be publicly disclosed on a regular basis. Entities found to be in breach of statutory or contractual obligations shall be designated as key supervision targets and subjected to focused scrutiny in areas such as project approval, authorization, filing, and financing collateral.

VI. Supplementary Provisions

These Measures shall take effect on May 14, 2022, and remain valid until May 13, 2024.

The Lingang New Area Management Committee reserves the right to interpret these Measures.