Local officials announced yesterday a slew of new policies to attract overseas investment to support economic growth, even as Shanghai registered an economy growth of 12.5 percent in July year-on-year.

The policies will ease visa requirements on top executives at overseas-funded companies, make it easier for multinational firms to exchange profits into foreign currency and send the money out of the country, and give district governments more authority to approve deals.

The government said it will also put more emphasis on developing the city's manufacturing sector.

"From now on, we will pay equal heed to the development of the manufacturing sector, as the city is facing stiffer competition from neighboring provinces in terms of attracting foreign capital," said Pan Longqing, chairman of the Shanghai Municipal Development Planning Commission.

Over the past couple of years, the city has pushed development of the service and banking sectors as part of its plans to become an international financial and trade center.

Pan said the city will actively work to attract more overseas investment into several sectors, including bio-pharmaceuticals, new materials, telecommunications equipment, auto-mobile manufacturing, shipbuilding, petrochemicals and steelmaking.

It will also encourage investment into infrastructure projects and public utilities, Pan said.

District governments will be granted authority to approve foreign-invested projects worth up to US$30 million, up from the current ceiling of US$20 million. The city government is also promising that ratification of all overseas-invested projects will be completed within 10 working days.

Chinese workers from outside of Shanghai working at local research and development centers will be granted local residency provided that they have at least completed a bachelor's degree, according to the city government.

Shanghai is currently home to 91 such centers.

"We will also try to get more such agencies to participate in government-led high-technology projects and apply for patents here," said Yu Beihua, vice chairman of the Shanghai Development and Reform Commission.

Overseas investors will also be welcomed to participate in the reform of the state-owned enterprises through mergers and acquisitions, said Wu Hongmei of the Shanghai State Assets Commission.

At present, Shanghai is home to the regional headquarters of 41 multinational firms. That number is expected to surpass 50 by the end of this year.

As of July 31, Shanghai has received US$70 billion in contracted investment from more than 30,000 overseas companies. Foreign-invested companies account for more than 60 percent to the city's industrial output and exports.

"It is necessary for Shanghai to resort to foreign capital to sustain rapid economic growth and upgrade the city's level of internationalization," said Shanghai Party Secretary Chen Liangyu at a meeting to announce the policies yesterday.