Regulations of the Zhangjiang National Innovation Demonstration Zone on Special Funds management

Updated:2016-02-05 (chinadaily.com.cn)

These regulations are formulated to standardize the management of the Special Funds as defined below.

Article 1 Purpose and basis

For the purpose of supporting the construction of the Shanghai Zhangjiang High and New Tech Development Zone into a national innovation demonstration area, enhancing the independent innovation capability of the zone, and creating an innovative environment in the zone, the Shanghai Zhangjiang National Innovation Demonstration Zone special funds (the "Special Funds"), were established with the municipal government's approval, in accordance with the following government documents: Approval of Building the Shanghai Zhangjiang High and New Tech Development Zone into a National Innovation Demonstration Area issued by the State Council; Several Opinions on Promoting the Construction of the Zhangjiang National Innovation Demonstration Zone by the CPC Shanghai Municipal Committee and the Shanghai Municipal Government; and the"12th Five-Year Plan" of the Shanghai Zhangjiang National Innovation Demonstration Zone. 

Article 2 Principles of management and usage

The Special Funds shall be tied closely to the general development plan of the zone, focused clearly on social good, standardization and effectiveness, and utilized as follows:

1.Applied to key development projects and used to strengthen support in weak links as required. 

2.Applied in ways that allow the market to play a sufficient role on the basis of the government's guidance and that explore various project development channels and mechanisms.

3.Applied to standardize the project management mode under the regulatory leadership of the Shanghai Zhangjiang National Innovation Demonstration Zone management committee.

4.Applied in ways that strengthen both supervision of capital expenditures and strict budget control. 

Article 3 Application Sphere

The Special Funds shall be used in the various branch sections of the zone and the city-level high-tech industrial parks approved by the Shanghai municipal government and placed under the management of the zone's management committee. 

The Zizhu high-tech industrial development district shall follow the Measures for the Regulations of the Shanghai Zizhu high-tech industrial development district on project conversion and special funds management. 

Article 4 Supporting Quotas

The Special Funds shall be jointly established by the Shanghai municipal government and the districts (towns) of each park. In general, funds granted to projects cannot be lower than 3.3 billion yuan annually. The annual city-level finance budget shall prepare 1.8 billion yuan for the zone, of which 1 billion will be allocated for Zhangjiang Central Park, 3 billion for other parks and 0.3 billion yuan for the zone's other key projects approved by the municipal government. All the districts (towns) shall arrange matching funds by a ratio of no lower than 1:1. 

The funds shall be carried over for use from 2011 to 2015. Each district (town) shall allot their matching capital to key projects in accordance with the overall funds to create linkage.

Article 5 Use of Special Funds

The Special Funds shall be used for supporting an innovative environment for emerging industry and clustered enterprises, as follows: 

1.Optimizing an innovation and entrepreneurship environment in areas of service, industry, habitation, financial services and natural ecology. 

2.Cultivating emerging industries, including developing and transforming the world's leading scientific advances, promoting the joint innovation of a complete industrial chain and incubating innovation clusters. 

3.Helping companies with global influence grow by perfecting scientific and technological intermediary services, supporting small and medium-sized scientific and technological companies to innovate, providing aid to big companies to enhance their key competitiveness, and building internationally known brands.

4.Cultivating leading talents for innovative industries through subsidies and training. 

5.Enhancing the zone's sphere of influence.

6.Supporting some other projects approved by the CPC Shanghai Municipal Committee and the Shanghai Municipal Government, subject to audit and supervision. 

Article 6 Forms of Support

The Special Funds shall be used to develop the zone by means of advance support, successive investments from time to time, adjustment after completion, government awards, and subsidies for interest payments on loans.

Article 7 Declaration and Approval Procedure

1.The Special Funds shall be subject to a filing and approval system. Each November, the management committee of the core park of the Zhangjiang National Innovation Demonstration Zone shall propose the budget for the following year and give it to the Zhangjiang high-tech district management committee for summarizing. 

2.Other parks shall be subject to a declaration and approval system. Inthe third quarter of each year the management committee of the Zhangjiang National Innovation Demonstration Zone shall make a project application handbook setting out its annual strategic plan and give it to the municipal finance bureau, development and reform commission, and science and technology committee for filing. The Zhangjiang National Innovation Demonstration Zone management committee shall be responsible for collecting and examining on a preliminary basis enterprises' application materials and make suggestions for next year's budget. 

Project budgets from all the parks in the zone shall be rechecked by the municipal finance bureau, development and reform commission, and science and technology committee by the end of December. The final version shall be filed in these organizations. Any budget change application shall be submitted by the zone's management committee and prescribed approval procedures shall be applied.

Article 8 Allocation of Special Funds

The Shanghai municipal finance bureau shall allot the Special Funds to the accounts of the zone's management committee and districts (towns) concerned in accordance with these regulations. Each district (town) shall allot the corresponding local matching capital to their accounts.

After receiving the Special Funds, the zone's management committee and the districts (towns) shall allot themto enterprises according to the projects' implementation schedule. 

Article 9 Audit and Supervision 

1.The Zhangjiang National Innovation Demonstration Zone management committee and local governments of alldistricts (towns) shall exercise whole-process supervision of the Special Funds'usage and projects' implementation.

2.The municipal audit department shall be responsible for auditing of the Special Funds. The municipal finance bureau, development and reform commission, and science and technology committee, together with the zone's management committee may invite qualified social agencies to do the audit. 

Article 10 Performance Assessment

1.The Zhangjiang National Innovation Demonstration Zone management committee, together with the municipal audit department, shall be responsible for evaluating the performance of the Special Funds. The municipal financebureau, development and reform commission, and science and technology committee shall establish and apply the performance evaluation procedure.

2.The Special Funds shall be used for no other than the said purposes. Any person violatingany law, regulation, or rule shall be held to account.

Article 11 Supplementary Provision

1.These Regulations shall be in effect on a trial basis from January 1, 2011 to December 31, 2015.

2.The Zhangjiang National Innovation Demonstration Zone management committee shall make detailed rules for their implementation and report those to the municipal department responsible for auditing of the funds. The rules shall also be provided to the municipal financebureau, development and reform commission, and science and technology committee for filing. 

3.The power to interpret these regulationsshall remain with the municipal financebureau, development and reform commission, science and technology committee, and the Shanghai Zhangjiang high-tech Zone management committee. 

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