Mayor vows full support for private firms

SHANGHAI Mayor Ying Yong has pledged support for private enterprises, responding to calls from central authorities to beef up backing for the private sector.

Private enterprises are an important driving force of economic and social development in the country’s financial and business center, Ying told Xinhua in an interview.

Private companies contribute to one-fourth of the gross domestic product, one-fifth of foreign trade, one-third of tax revenue and over 70 percent of new jobs in Shanghai, he said.

Private firms are also a major driver behind technological innovation in the city as more than 90 percent of tech companies are privately owned, Ying said.

The local government will continue to offer a level playing field for the public and private sectors as well as foreign investors and encourage them to coexist and cooperate for common development, he said.

The city has rolled out a spate of measures to support the private sector, according to the mayor.

Local authorities have set up a 10 billion yuan (US$1.4 billion) fund to help ease liquidity risks for publicly-traded firms which have pledged shares as collateral for loans, he added.

Authorities are also offering 10 billion yuan of credit and secured loans and another 10 billion yuan of guaranteed funds for small and mediumsized private businesses.

The city government will reduce taxes, administrative fees and land-use costs and also unveil preferential policies to encourage innovation and domestic and overseas business expansion, the mayor said.

In addition, Shanghai is mulling a new round of action plans, including measures to facilitate trade and investment, to further improve its business environment, Ying said.