Shanghai Issues Measures for the Administration of Municipal-Level Government Investment to Clarify Approval and Implementation Rules

On July 13, 2026, the Shanghai Municipal People’s Government promulgated the Measures for the Administration of Municipal-Level Government Investment of Shanghai (the “Measures”), which shall come into force on August 1, 2026, and shall remain in effect through July 31, 2031.

The Measures clarify the scope of municipal-level government investment, the direction of fund allocation, and such methods as direct investment, capital injection, investment subsidies, and loan interest subsidies. They implement a project reserve system and approval procedures for project proposals, feasibility studies, preliminary designs, and budget estimates. They also provide that approval procedures for specific projects may be simplified, while major changes to a project’s preliminary total investment, construction content, and other material matters require adjustment approval. Annual plans shall be aligned with the budget, project commencement must satisfy statutory conditions, and funds shall be earmarked for designated purposes and used exclusively therefor, with bidding, tendering, and procurement conducted in accordance with the law. At the same time, the Measures require that approvals be handled and construction information be submitted through an online platform, and that supervision and inspection, completion acceptance, final financial accounts, post-project evaluation, and the collection and consolidation of credit information be carried out.