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More than 200 local employees have changed themselves into "bosses" thanks to the Shanghai city government's new private investment policies.
Sources with the Shanghai Administration of Industry and Commerce revealed that a total of 235 full-time employees have bought into or registered 286 enterprises in Shanghai's Pudong New Area in August, with an accounted registered capital of 171 million yuan (US$20.7 million).
"The investment passion is a little bit unexpected and I think it's just a start," said Meng Junqing, enterprise registration director of the administration's Pudong Branch.
Previously, only farmers, unemployed or retired workers and self-employed laborers could register or invest in businesses.
The Shanghai municipal government took the initiative to allow ordinary workers to invest in local businesses in a bid to further increase private investment and create more jobs.
The new regulations, announced in early July in a regular government press release, were tentatively implemented in the city's flagship Pudong New Area on August 1.
Full-time employees from both Shanghai and other areas across the country, excluding government staff and senior executives of State-owned enterprises, can buy into local firms, except foreign-invested companies, or register new businesses in Shanghai while keeping their original jobs.
Statistics show most of the newly-registered enterprises are trading companies and others cover consultancy, machinery and the petrochemical industry.
Investors still work for their original companies and only act as shareholders of their own enterprises, according to Meng.
"Some of them do hold a title as board director or general manager, but they invite other professionals to help manage their businesses," said Meng.
Such private investment, however, should not infringe upon the investors' original companies' interests and needs to abide by the relevant laws concerning business secrets, according to Meng.
Among the first batch of 235 "worker bosses," there are four scientific researchers, two teachers and one doctor, with the rest coming from ordinary companies.
Most investors currently still choose not to be exposed by media as their employers may not expect their people to start new businesses, said Meng.
Jiao Yang, Shanghai municipal government spokeswoman, commented earlier that the new policy marks a "significant policy breakthrough," and would help increase local private investment, the key to helping create more jobs.
Quoting from local economists' studies, Jiao said that one job will be created for every 130,000 yuan (US$15,700) invested in a Shanghai-based enterprise.
(China Daily September 10, 2003)
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