1. Purpose and basis
Following the Opinions on Strengthening Financial Service in Promoting Economic Transformation and Structure Adjustment’s guidance, a structure adjustment and transformation promotion special financial fund (hereinafter referred to as “special financial fund”) is set up to build an innovation-driven Baoshan with transformed development, expedite the construction of a modern Binjiang area and generate a fine regional financial ecology to serve for the Shanghai’s efforts in becoming an international financial center. This regulation is thus designed to formulate the use and management of the special financial fund.
2. Fund arrangement
Annual fiscal budget for the special financial fund is 30 million yuan (US$ 4.36 million) and streets (parks) are in charge of distribution based on the Opinions. The special financial fund sets out to guide and boost financial industries in the district, encourage the gathering of financial institutions and services as well as financial innovation. The fund is also in favor of banks to expand more branches and convenience facilities, enterprises listing after changing organizational forms and various financial activities to be carried out. The special financial fund is managed through a specialized account and budget limit next year can be reasonably adjusted according to its execution this year.
3. Applicable entities
3.1 Banks, insurance companies, securities and other financial institutions;
3.2 Financial service institutions whose commercial registration and tax payment are in Baoshan, including financing bonding companies, small loan companies, pawnshops, equity investment enterprises, equity investment management companies, securities, lease finance companies, etc.
3.3 Enterprises covered in Baoshan’s structure reform and listing pool or listed at Shanghai Equity Exchange or National Equities Exchange and Quotations.
3.4 Other eligible and certified financial service institutions or organizations including information and data services, asset management, third party payment and credit rating companies.
4. Favorable policies and conditions
4.1 Encourage the optimized layout and agglomeration development for financial institutions and service enterprises.
4.1.1 For the village and town banks approved for establishment, subsidies will be given at the rate of no more than 1 percent of the paid-in capital with 1 million yuan as the upper limit.
4.1.2 For the financing bonding companies and small loan companies approved for establishment, 300,000 yuan, 400,000 yuan and 500,000 yuan of subsidies will be given to the companies with paid-in capital (including after capital increase) under 200 million yuan, 200 (including) -500 million yuan and over (including) 500 million yuan.
4.1.3 For non-local securities that set up branches or professional subsidiaries with direct investment or asset management, subsidy should be given at the rate of 5 percent of paid-in capital with 500,000 yuan as the upper limit.
4.1.4 For municipal branches set up by national or foreign-invested financial institutions or regional business and operational headquarters directly led by the top management, subsidy will be given at the rate of 1 percent of paid-in capital with 3 million yuan as the upper limit.
4.1.5 For financial service institutions specializes in service outsourcing, Internet finance, financial information, education and training, futures and pawn business, once certified, subsidies referring to paid-in capital and service capability with 500,000 yuan as the upper limit will be given.
4.1.6 For asset management enterprises in the sunshine private placement, subsidy with an upper limit of 500,000 yuan will be given depending on a series indexes including asset management scale (based on legal instruments including trust contracts, registered capital, partnership agreements, etc.), transaction frequency and performances in the past. The subsidy will be given in halves in two years. Enterprise managing especially large sums can be processed according to Opinions. Companies to receive subsidies should open an account at the securities operational and futures departments in the district and submit corresponding materials to district finance administration. Subsidies will be distributed after the materials are reviewed and approved.
4.1.7 For the third party payment companies registered and paid taxes at Baoshan that own the Payment Business License issued by the central bank, subsidies will be given at the rate of 2 percent of the paid-in capital with the upper limit of 8 million yuan. The subsidy will be given in halves in two years.
4.1.8 For the newly-introduced lease finance companies, including those approved by China Banking Regulatory Commission or commerce commission, certain subsidies will be given.
For the financial lease company approved by CBRC whose registered capital is 500 million yuan or more, subsidies will be given based on the companies’ scale and contribution to the district, with an upper limit of 10 million yuan. The subsidy will be given at the rate of 40 percent, 30 percent and 30 percent for three years in a row.
For other lease finance companies whose registered capital is between 100-200 (including) million yuan, subsidies will be given based on the companies’ scale and contribution to the district, with an upper limit of 10 million yuan. The subsidy will be given at the rate of 50 percent, 20 percent and 30 percent for three years in a row. For those whose registered capital is higher than 200 million yuan, the subsidies will be executed according to the Opinions.
4.1.9 Banks are encouraged to speed up the governmental project of bringing financial convenience into the community and provide financial service mainly for newly constructed large residential communities and indemnificatory housing including certified economically affordable housing, ancillary commercial housing and low-rent housing. For each automatic teller machine installed, a subsidy of 20,000 yuan will be given.
4.1.10 Financial institutions or institutions providing financial or postal services are encouraged to set up branches at large residential communities, rural areas, certified feature industrial parks and modern service industry gatherings. Corresponding rent or housing purchase subsidies will be given once approved, with an upper limit of 1 million yuan.
4.1.11 For the equity investment enterprises established according to the Notice on Industrial and Commercial Registration for Equity Investment Enterprises, subsidies will be given based on the contribution to Baoshan’s economy. Enterprises of such approved for establishment receive subsidy based on its registered capital. Subsidies of 2 million yuan at most and 5 million yuan at most will be given respectively to paid-in capital of 100-500 million yuan (excluding 500 million yuan) and 500 million-1 billion yuan (excluding 1 billion yuan). Those exceed 1 billion yuan will be executed according to the Opinions. The funds above will be appropriated in several sums at a certain proportion.
For the partnership equity investment enterprises approved for establishment, a one-time subsidy will be given to their investment management companies registered at Baoshan according to their promised capital from the natural person and the legal person institution in the district. The subsidy standard will refer to the last article. If this part of contribution exceeds 70 percent of the promised capital from the partnership enterprise, rewards will be given according to the total sum of the partnership enterprise’s overall promised capital. If not, the reward will be given according to the actual capital contributed.
4.1.12 The district will establish guidance fund for start-up investment, set up management rules for fund use and promote the preliminary and growing enterprises that are in accordance with the region’s industry development. Equity investment companies with national and/or Shanghai equity investment fund taking part in or companies fitting in Baoshan’s fund requirements can apply for Baoshan’s equity investment fund. Single fund application should not exceed 20 percent of the actual fund raised and normally should be under 50 million yuan. The sum will be given in proportions based on the fund actually raised. Among the enterprises Baoshan’s fund invests, those set up in company mechanism will be entitled to subsidy in the preceding phase while those set up in partnership mechanism will receive 1 million at most of a one-sum subsidy at the equity investment management company in Baoshan and no preceding subsidy will be given.
4.1.13 To promote the lawful operation and sound development of the lease finance companies and small loan companies, full-amount support will be given to professional services including special audit and risk screening during the period of continued existence.
4.1.14 Professional service institutions providing law and audit services to the Baoshan-funded equity investment companies will be given full-amount support.
4.2 Encourage local hyper-enterprises’ transformation toward financial service industry
For Local hyper-enterprises to register and set up finance bonding company, small loan company, financial lease company, factoring company, company or partnership equity investment fund and equity investment fund management company, major supports will be given.
4.2.1 The setting up of small loan company with paid-in capital (the added capital included) lower than 500 million yuan, 500,000 yuan of subsidy will be given; for those with paid-in capital (the added capital included) higher than 500 million yuan, 1 million yuan of subsidy will be given.
4.2.2 Subsidy for setting up financial lease company will be given at the rate of 1 percent of the paid-in capital, with 15 million yuan as the upper limit.
4.3 Encourage for financial service innovation
4.3.1 For the district-certified key industry loan financing platform, a 25 percent of street (park)-provided start-up fund limit will be given, with 5 million yuan as the upper limit.
4.3.2 For the commercial finance lease companies that participate in the setting up of the municipal or district SMEs financing guarantee fund and providing financing services for the SMEs that fit with the regional industry policy, a compensation of 20-40 percent of the compensatory guarantee will be given. In the compensation for hi-tech enterprises, the proportion for the city and the district to undertake is sixty-forty while for common enterprises the proportion is fifty-fifty.
4.3.3 For the bonding service institutions that provide SME collective bond and notes issuance, risk compensation at the rate of 1.5 percent of the guarantee amount will be given, with the upper limit of 1 million yuan.
4.3.4 In the case when the equity investment company registers and establishes a file at Baoshan and invests over 40 percent of the fund raised into the district’s information service, modern commerce, tourism and cruise service, professional services, smart equipment, new materials and other emerging industries and projects, risk compensation will be given to the company at the 0.5 percent of the actual sum invested, with 3 million yuan as the upper limit.
4.3.5 Financial institutions are encouraged to develop “bank insurance” to ensure performance of insurance and loans; financing service innovation should lean towards the technological, creative and light-asset SMEs. Relevant policies should be executed according to the Opinions based on the program’s innovation and its contribution in supporting regional industry development.
4.4 Enterprise structure-reform and equity trust listing are encouraged
4.4.1 Enterprises in the district’s listing pool that has completed the stockholding system reform, obtained the new Business License of Enterprise Legal Person and owned the basic listing quality will be given an agency fee subsidy with 1 million yuan as the upper limit, if the enterprise plans to be listed offshore and finishes the restructure for listing offshore; for those that have complete the listing quality and the application materials are being processed by China Securities Regulatory Commission (or the commission responsible for supervising local listing), an agency fee subsidy with 1 million yuan as the upper limit will be given; when successfully listed offshore, a reward with 1 million yuan as the upper limit will be given. For each of the three phases above, 100 percent of subsidy or prize will be given if the enterprise is listed at Shanghai Stock Exchange, or else 80 percent.
4.4.2 The enterprise in the listing pool that restructures its assets and get listed offshore through shell purchase or back-door listing and transfer its industrial and commercial registration and tax to the district will be rewarded with 3 million yuan as the upper limit. A 100 percent of subsidy or prize will be given if the enterprise is listed at Shanghai Stock Exchange, or else 80 percent.
4.4.3 A listed company in fine financial status outside the district will be rewarded with 5 million yuan as the upper limit if it transfers its headquarters, industrial and commercial registration and tax to the district. A 100 percent of subsidy or prize will be given if the enterprise is listed at Shanghai Stock Exchange, or else 80 percent.
4.4.4 Within 3 years after the listing, rewards will be given if the enterprise pays in an accumulated 50 percent of the direct finance into the district’s industry. A 0.2 percent of the paid-in investment will be given with 1 million yuan as the upper limit if the sum is between 100-500 million yuan; a 0.2 percent of the paid-in investment will be given with 2 million yuan as the upper limit if the sum is above (including) 500 million yuan.
4.4.5 If the enterprise in the district plans to be listed at Shanghai Equity Exchange and requires a support fund, listing pool registration should be done before initiating the listing process. Subsidy will be given based on the actual agency fee when it is successfully listed. The upper limit is 1.5 million yuan.
4.4.6 Enterprises outside the district are encouraged to transfer into the district and be listed at the Equity Exchange. After transfer and successful listing, the enterprise can be rewarded after the listing pool registration. A reward with 500,000 yuan will be given besides the listing subsidy.
4.4.7 For the enterprises listed at NEEQ after the stockholding system reform, subsidy will be given based on the actual agency fee, with 1.5 million as the upper limit.
4.4.8 Streets (parks) are encouraged to enhance the enterprise listing and the direct financing through OTC market. For each enterprise successfully listed, the street (park) where it belongs gets 200,000 yuan; for each enterprise introduced or listed at the NEEQ or Shanghai Equity Exchange, the street (park) where it belongs gets 10,000 yuan.
4.5 Financial services are encouraged to carry out
4.5.1 District’s government-approved industry financial symposiums, promotion events, project negotiations and major surveys held by the state or city finance administrations or organizations will get 50 percent of subsidy based on the scale and the actual consumption. Single sum will not exceed 500,000 yuan.
4.5.2 District finance unions are encouraged to bring financial institutions and financial service enterprises into Baoshan and to innovate on financial services, boost direct financing promotion and symposiums and urge the restructuring and transformation in the financial service sector. A fine platform for talk between the industry, the banks and the local government should be built. Subsidy will be given based on the actual project achieved and the sum on the contract. Single subsidy will not exceed 200,000 yuan.
4.6 Financing compensation for micro, small and medium enterprises
4.6.1 Financing compensation for micro and small enterprises. When the non-performing loan ratio has exceeded 1.5 percent for the pilot loan from the commercial bank approved y the municipal administration, the city and district governments will compensate according to the proportion of 35:65, while the commercial bank pursues for recovery.
4.6.2 Financing service platform is to establish for micro, small and medium enterprises. An annual 1 million yuan at top is to support the platform and other financial services to provide convenience and large amount of financing services for micro, small and medium enterprises.
4.6.3 The financial institution to provide export credit insurance to the micro and small enterprises in Baoshan to expand international market, an annual 2 million yuan of subsidy to cover 15 percent of the actual business sum.
4.7 Other financial awards can be considered when in need.
5. Application materials
5.1. Written application and self-assessment from the applying unit;
5.2. Baoshan Special Financial Fund Application Form (excluding enterprise listing) or Baoshan’s Special Financial Fund Application Form for Enterprise to be Listed;
5.3. Application on house purchase or rental subsidy requirements leasing agreement for office occupancy or house purchasing contract for office occupancy (original document as well as the copy);
5.4. Business license for enterprise legal person, tax registration certificate, organizational code certificate, relevant documents of approval for establishment (with seal) and other materials.
5.5 The enterprise’s written promise on non-illegal behaviors on industrial and commercial management, tax issues, industry regulations or foreign currency management in latest two years.
5.6 Other relevant materials.
6.1 District Financial Office (Enterprise Listing Service Office) shall be in charge of the special financial fund management, including the information release, reception, report, implementation, supervision and the assessment of the projects.
6.2 In actual determining, the level of contribution to Baoshan’s regional economic development according to the regulation should take the enterprise’s practical need, economic tribute, scientific and technological innovation, employment promotion, energy saving and emission deduction and social credit into consideration.
6.3. While superior support and this regulation are both applicable, the superior decision is always prioritized and this regulation complements. Specific management or rules should be adopted if such has been released afterward. The same entitled object can choose from the better, but will not be repeatedly granted with the policies.
6.4 In terms of fund appropriation, District Financial Office (Enterprise Listing Service Office) should apply from district finance bureau based on approval from the Special Financial Fund Committee. The fund will be appropriated directly from the bureau to the applying unit.
7. Management and supervision
The management and supervision of the special financial fund will be performed referring to the Opinions.
8. Supplementary articles
8.1 The regulation should be effective for three years since the date of printing and issuance.
8.2 Baoshan Financial Office (Enterprise Listing Service Office) and Development and Reform Commission reserve the right to explain.