City enacts measures to support businesses hit hard by virus

Shanghai released a series of 22 measures to support various industries and business entities, an effort to stabilize growth and further revive the economy from the impact of the COVID.

Prior to this move, the city put into practice two rounds of bailout policies that have started to bear fruit.

In August, the major economic indicators, including industrial output, financing, fiscal revenues and real estate, all achieved double-digit growth in the city, while investment and consumption also recovered at a faster pace.

This batch of 22 measures, meanwhile, is mainly to support the recovery of hard-hit industries, further support micro, small and medium-sized market entities, expand demand and optimize the business environment.

Focusing on the life-services sectors hard hit by the COVID-19 outbreak, as well as culture, tourism, sports, conventions and exhibitions, advertising and aviation, the city is stepping up bailout efforts.

For instance, it will offer subsidies for movie tickets, the business resumption of commercial cinemas and stadiums, and theaters that have been closed or forced to implement occupancy limits.

SMEs, if recognized by authorities as city-level or national-level SMEs specializing in niche sectors, will be given bonuses of no less than 100,000 yuan (US$13,863) and 300,000 yuan, respectively.

On foreign trade and foreign investment, Shanghai is making efforts to help reduce costs and cut red tape for enterprises while making it easier and faster for export tax rebates.

The city is also supporting leading enterprises to upgrade and expand their businesses and capacities. Districts are encouraged to offer more support to advanced manufacturing firms that post industrial output exceeding 1 billion yuan, 5 billion yuan and 10 billion yuan for the first time.

New growth sectors, such as green and low carbon, metaverse and smart terminal, will be further fostered with more supportive policies.

The city is also enhancing inclusive finance to better serve businesses, launching a pilot program of inclusive finance advisers.

As for the reduction of medical insurance fees, the burden of institutions' or businesses' contributions for employees' medical insurance will be alleviated, with the ratio of business contributions decreasing by 0.5 percentage points.

Additionally, toll-road truck tolls will be cut or waived in the fourth quarter of 2022.