Shanghai pilots community banks to boost innovation

SHANGHAI - East China's business hub Shanghai will explore setting up community banks and international funds to encourage innovation and startups, said a senior city official Monday.

The city's Yangpu district will explore: the establishment of community banks devoted to small and medium-sized tech firms; the cluster development of early-stage startup investment funds; and international innovation acquisition funds via cooperation with foreign investors, said Xie Jiangang, head of the district.

The district will choose banks and financial institutions to pilot the integration of equity and debt financing services for corporate innovation, he said.

Yangpu will also strive to take the lead in building an intellectual property rights credit system, and create a new environment for low-cost startups with reforms and policies, said the official.

Yangpu was one of 28 demonstration bases listed by the State Council in May to support entrepreneurship and innovation. The list includes: 17 regional bases, such as Haidian district in Beijing and Yangpu in Shanghai; four based on university and research institutes; and seven based on firms such as home appliance maker Haier.