Recruiting in China

Shanghai announced new measures to encourage private investment in small and micro companies, the latest move to boost venture capital in the city.

The local government said in an online statement yesterday that it is striving to build Shanghai into an international venture capital center.

By 2017, the city is expected to accumulate an additional 100 billion yuan (US$16 billion) in capital for investing in innovative companies. The city also forecasts attracting an extra 1,000 venture capital professionals and 100 influential venture capital firms in a bid to help start-up companies receive the guidance they need.

The city's Venture Capital Investment Guidance Fund increased 1 billion yuan annually in the past three years. The fund invests in targeted sectors and also serves as a guide for privately owned funds. District and county-level governments are encouraged to establish similar funds.

Shanghai plans to simplify foreign investment procedures in domestic venture capital firms by piloting a foreign exchange settlement trial.

State-owned enterprises are also being encouraged to form VC firms.

The new measures are part of the government's efforts to support small and micro companies in Shanghai. Apart from direct financing solutions, Shanghai has also encouraged banks to lend money to cash-strapped small companies.

Executive Deputy Mayor Tu Guangshao's said earlier this week that Shanghai will improve fundraising services for small and micro companies.

There were about 370,000 small and micro enterprises in the city as of the end of 2013. They accounted for 97.1 percent of incorporated companies and provided 54 percent of the city's jobs.

Elsewhere, the People's Bank of China's Shanghai Headquarters agreed to loan 1 billion yuan (US$161.1 million) to Shanghai Rural Commercial Bank.