(Yicai Global) Nov. 5 -- Authorities in Shanghai have published a draft document of 27 new measures geared to develop the private sector with CNY30 billion (USD4.2 billion) in funding.

The money will be split into three equal portions to bail out struggling listed companies, offer credit to high-quality small- and medium-sized enterprises, and expanding the size of a the financing guarantee fund for SMEs, the Shanghai Municipal Economic and Informatization Commission said in the document, published on Nov. 3.

As well as putting up money for private firms, the eastern metropolis wants to cut costs in four areas: tax, land, administration and utilities, and improve the relationship between businesses and the government.

The plans follow a Nov. 1 forum convened by Chinese President Xi Jinping, during which he praised the private sector and its contributions to the economy -- half of tax revenue, 60 percent of gross domestic product and 80 percent of urban jobs.

Private firms in China have often played second fiddle to their state-owned counterparts, and are rarely first in line when in need of credit. But trade tensions with the United States have forced Beijing to reinvigorate the hard-hit private sector, which Xi said has been an indispensible force behind national development over the past 40 years.

Xi proposed at the forum six new measures aimed at facilitating development and quashing problems faced by private companies, such as cutting tax and making finance more accessible to level out the playing field with state-owned enterprises.

Shanghai also plans to open up private investment and guide capital toward the construction of infrastructure and public utilities, and support private firms partaking in the revitalization of government-owned stock assets.

Editor: James Boynton