Shanghai rolls out detailed rules to support high-growth firms

In a move to strengthen innovation-driven development, Shanghai has released a detailed implementation plan to support high-growth enterprises.

The policy document, titled Management Implementation Rules of Shanghai Municipality for Accelerating the Development of High-Growth Enterprises (Trial), was issued by the Shanghai Municipal Commission of Economy and Informatization on Dec 19.

Effective from Dec 22, 2025, to Dec 21, 2027, the rules classify high-growth enterprises into four levels: potential gazelle enterprises, gazelle enterprises, potential unicorn enterprises, and unicorn enterprises. Each tier reflects a different stage of development, ranging from early-stage innovators to globally competitive giants.

The document sets out the evaluation criteria and government support measures for high-growth enterprises. It follows the Three-Year Action Plan of Shanghai Municipality for Accelerating the Development of High-Growth Enterprises (2025-27), released in July.

According to the plan, Shanghai aims to cultivate 400 potential gazelle enterprises, 300 gazelle enterprises, 200 potential unicorn enterprises, and 100 unicorn enterprises by 2027.

• Legally registered in Shanghai and operating as an independent legal entity.
• Core business aligned with the city's industrial priorities.
• Not listed as an abnormal or seriously dishonest entity. Products and services must not fall under nationally prohibited, restricted, or obsolete categories. No major safety incidents (including cybersecurity, data security, or production safety), quality or environmental incidents, or serious violations such as data fraud or tax evasion in the past three years.

In addition to the above-mentioned conditions, enterprises must meet specific criteria to qualify under each category.

• Established for more than three years but no more than 10 years; not publicly listed.
• At least 20 employees; operating revenue of at least 20 million yuan($2.85 million) in the previous year.
• Compound annual growth rate of operating revenue of at least 10 percent over the past two years, with positive growth in both years.
• Average annual R&D expenditure of at least 10 million yuan over the past three years, accounting for no less than 3 percent of operating revenue each year.

• Established for more than three years but no more than 10 years; not publicly listed.
• At least 50 employees; operating revenue of at least 50 million yuan in the previous year.
• Compound annual growth rate of operating revenue of at least 20 percent over the past two years, with positive growth in both years.
• Average annual R&D expenditure of at least 20 million yuan over the past three years, accounting for no less than 5 percent of operating revenue each year.

• Established for no more than 10 years.
• Has received equity investment from qualified institutional investors; not publicly listed.
• Post-investment valuation of at least 5 billion yuan in the most recent equity financing round, with cumulative paid-in capital from qualified institutional investors of at least 100 million yuan at that valuation.

• Established for no more than 10 years.
• Has received equity investment from qualified institutional investors; not publicly listed.
• Post-investment valuation of at least 7 billion yuan in the most recent equity financing round, with cumulative paid-in capital from qualified institutional investors of at least 350 million yuan at that valuation.

The identification of potential gazelle enterprises and gazelle enterprises follows an "application-free" model, requiring no submission from companies. In contrast, potential unicorn enterprises and unicorn enterprises are identified through voluntary applications based on self-assessment.
Enterprises that pass the preliminary review will be recommended to the Shanghai Municipal Commission of Economy and Informatization for further evaluation.
Once officially recognized and listed on the Shanghai Enterprise Service Cloud platform, these companies will receive prioritized, multi-faceted support.

• Enhanced government coordination to strengthen support for high-growth enterprises in areas such as talent recruitment, resource acquisition, and application of innovative products.
• Sharing of the high-growth enterprise list among relevant departments to guide policy funds toward long-term investments in early-stage and small-sized enterprises.
• Enhanced service capacity for small and medium-sized enterprises, with integrated market resources providing support in financing, international expansion, and rights protection.
• Development of a supportive innovation ecosystem through services such as innovation space development, collaborative platforms, and promotion of innovative products.
• Closer communication and service mechanisms to promptly address challenges faced by high-growth enterprises.

Note: The English text is for reference only. In case of any discrepancies, the Chinese version shall prevail.

(Sources: Shanghai Municipal Commission of Economy and Informatization, VCG)
Source: Intl Services Shanghai