Chapter 1 General Provisions

Article 1 (Purpose and Basis)

To implement the strategy of building a manufacturing powerhouse, establish the “Made in Shanghai” brand, continuously strengthen the functions of high-end industries, accelerate the cultivation of new growth drivers, secure control over key links in industrial chains, accelerate the industry’s ascent to the high end of the value chain, enhance industrial foundational capabilities and the modernization level of industrial chains, and strive to build autonomous, controllable, secure, and reliable industrial and supply chains to promote high-quality industrial development, the Shanghai Special Fund for Promoting High-Quality Industrial Development (hereinafter referred to as the “Special Fund”) is hereby established.To meet the needs of integrated industrial development, strengthen the coordination of funds, projects, and management, and improve the efficiency of fund utilization, these Measures are hereby formulated.

Article 2 (Principles of Use)

The use of the Special Fund shall comply with relevant national and municipal regulations on fiscal budget management, focus on key enterprises and key projects, be performance-oriented, and ensure the safe and efficient use of the Special Fund. The Special Fund shall focus on the three leading industries of integrated circuits, artificial intelligence, and biomedicine, striving to achieve innovative breakthroughs; focus on key industries such as electronic information, automobiles, high-end equipment, advanced materials, life sciences and healthcare, and fashion and consumer goods, striving to build internationally competitive high-end industrial clusters; and focus on the transformation and upgrading of traditional competitive manufacturing sectors, promoting the integration of advanced manufacturing and modern services, and enhancing the core competitiveness of industries.

Article 3 (Management Responsibilities)

The Shanghai Municipal Commission of Economy and Information Technology (hereinafter referred to as “the Municipal Commission”) is responsible for compiling the budget for the Special Fund, determining the annual direction and priorities for its use, and conducting daily management of the Special Fund; it shall implement full-lifecycle management of Special Fund projects, conduct supervision and inspection of project implementation, and implement performance management of the Special Fund. The Shanghai Municipal Finance Bureau (hereinafter referred to as “the Municipal Finance Bureau”) is responsible for the budget management and disbursement of the Special Fund, supervising and inspecting the use of the Special Fund, and guiding and promoting the performance management of the Special Fund. Where the scope of use of the Special Fund involves multiple departments, each functional department shall, in accordance with their respective responsibilities and the relevant requirements of the Special Fund’s scope of use, collaborate to ensure the proper use, management, and supervision of the Special Fund.

Article 4 (Supervision System)

The allocation, disbursement, use, and management of special funds shall be subject to audit supervision by audit authorities in accordance with the law, and shall actively accept supervision from the Municipal People’s Congress and the public.

Article 5 (Funding Sources)

The special funds shall be allocated from the municipal fiscal budget and incorporated into the departmental budget management of the Municipal Commission of Economy and Information Technology. Chapter II Scope and Methods of Fund Support Article 6 (Support Directions) Centering on the overall goal of high-quality industrial development, the special funds aim to enhance industrial innovation capabilities, improve industrial foundational capabilities and the modernization level of industrial chains, promote the industrialization of innovation outcomes, empower industrial upgrading, accelerate the cultivation of emerging industries, build high-end industrial clusters, and optimize the industrial ecosystem. The special funds shall primarily be used for the following purposes:

(1) Technological Breakthroughs in Key Strategic Industrial Areas. Support enterprises in deploying innovation chains along industrial chains, focusing on key industrial sectors and leading enterprises to concentrate on overcoming core technological challenges. By targeting key areas such as critical components, parts, basic materials, and foundational industrial software, this initiative aims to enhance industrial foundational capabilities and supply chain resilience, and foster innovative leading enterprises and industry leaders.

(2) Demonstration and application of industrial innovation and integration. Support the expanded application of innovative products, promote the accelerated integration of advanced manufacturing with modern services, and drive the deep integration of next-generation information technology with key industries. Create application scenarios that serve as benchmarks and exert significant influence, thereby driving the development of new industries, new business formats, and new models.

(3) Enhancing High-End Industrial Supply Capabilities. Support the accelerated commercialization of innovation outcomes to enhance high-end industrial supply capabilities. Support the use of new technologies, business models, and industry formats to empower industries, and promote upgrades toward intelligent, branded, service-oriented, and green development.

(4) Optimizing the Industrial Ecosystem. Support the construction of open innovation platforms in key industries, cultivate solution integrators and suppliers in key sectors, enhance soft power in areas such as industrial technical standards, quality, branding, and intellectual property, strengthen talent aggregation in key industries, and promote the development of specialized industrial parks and industrial clusters.

(5) Major municipal industrial projects approved by the Municipal Party Committee and Municipal Government.

Article 7 (Support Methods)

The special fund may utilize support methods such as grants, incentives, government procurement of services, loan interest subsidies, and insurance premium subsidies. Depending on the different stages of industrial development, we will explore the implementation of linked support and rolling support. Specific support methods and standards shall be determined by implementation rules and other relevant documents. Except for projects explicitly targeted for support by the Municipal Party Committee and Municipal Government, in principle, projects that have already received support from other municipal-level fiscal funds shall not be supported by the special fund.

Chapter III Budget Management and Fund Disbursement

Article 8 (Budget Preparation)

The Municipal Commission of Economy and Information Technology shall, in accordance with relevant requirements for departmental budget preparation, determine the support priorities for the following fiscal year, prepare the annual special fund budget, incorporate it into the Commission’s departmental budget, and submit it to the Municipal Finance Bureau in accordance with prescribed procedures. The Municipal Finance Bureau shall determine the annual budget scale of the special fund based on factors such as the annual work plan proposed by the Municipal Commission of Economy and Information Technology, the budget execution status of the previous fiscal year, and performance evaluation results from prior years.

Article 9 (Budget Execution)

The Municipal Commission of Economy and Information Technology shall promptly establish a project reserve, create a special fund project database, implement a rolling project database system, and reasonably schedule project expenditures according to the timeline.

Article 10 (Budget Adjustment)

Once the annual budget for the special funds is approved and issued, it must be strictly implemented. If adjustments to the annual budget are indeed necessary during budget execution, they shall be carried out in accordance with the relevant provisions on the dynamic adjustment management of municipal departmental budgets.

Article 11 (Fund Disbursement)

The Municipal Commission of Economy and Information Technology shall, based on the approved annual budget, apply to the Municipal Finance Bureau for fund disbursement within the approved budgetary limits. After review in accordance with regulations, the Municipal Finance Bureau shall disburse the special funds in accordance with the management requirements for centralized treasury payments.

Chapter IV Supervision and Management

Article 12 (Information Disclosure)

The Municipal Commission of Economy and Information Technology shall disclose the usage of special funds to the public and accept social supervision. Government information legally designated as state secrets, government information prohibited from disclosure by laws or administrative regulations, and government information that may endanger national security, public safety, economic security, or social stability if disclosed shall not be made public. Government information involving trade secrets, personal privacy, or other matters where disclosure would harm the legitimate rights and interests of third parties shall not be disclosed. However, such information shall be disclosed if the third party consents to disclosure or if the Municipal Commission of Economy and Information Technology determines that non-disclosure would significantly affect the public interest.

Article 13 (Performance Management)

The Municipal Commission of Economy and Information Technology and the Municipal Finance Bureau shall implement comprehensive performance management of the special funds, establish performance targets, conduct performance tracking and evaluation, and strengthen the application of evaluation results.

Article 14 (Supervision and Inspection)

The Municipal Commission of Economy and Information Technology shall exercise full-process supervision over the use of the special funds and the implementation of projects. The Municipal Commission of Economy and Information Technology and the Municipal Finance Bureau may, on their own or by entrusting qualified third-party institutions, conduct supervision and inspection of the special funds to ensure their standardized, secure, and effective operation.

Article 15 (Accountability)

Special funds must be used exclusively for their designated purposes; withholding or misappropriation is strictly prohibited. Acts such as fraud, withholding, or misappropriation that violate national laws, regulations, or relevant disciplinary rules shall be handled in accordance with the "Regulations on Penalties and Disciplinary Actions for Fiscal Law Violations," and the special funds already disbursed shall be recovered in accordance with regulations. Depending on the nature of the project unit’s breach of trust, adverse records shall be submitted to the Municipal Public Credit Information Service Platform in accordance with relevant regulations, and corresponding restrictive measures shall be implemented at various management stages based on the severity of the breach.

Chapter V Supplementary Provisions

Article 16 (District-Level Matching)

Each district may, based on the characteristics of its respective region and the actual conditions of industrial development, establish special funds and formulate corresponding support measures to promote high-quality regional industrial development.

Article 17 (Interpretation)

The Municipal Commission of Economy and Information Technology and the Municipal Finance Bureau shall be responsible for interpreting these Measures.

Article 18 (Effective Date)

These Measures shall take effect on October 27, 2020, and remain valid until October 26, 2022.