(Yicai Global) Nov. 10 -- The Shanghai government instituted a new policy for bike-sharing services yesterday, declaring that e-bike sharing schemes are discouraged, and that children below 12 are prohibited from using shared bikes.

Shanghai's municipal transport commission and public security bureau jointly released their Guiding Opinions of the Shanghai Government on Encouraging and Standardizing the Development of Internet-Based Bicycle Rental Businesses (Interim) yesterday.

Bike-sharing service providers should ensure product conformity with existing national and industry standards, apply for licensing per relevant public security and traffic regulations, and upload data onto the city's information service platform, per the document.

On bicycle management and funds safety, the opinions provide that service providers should improve on-site dispatch management to optimize supply during rush hours, collect and dispose of derelict bikes in a timely manner and keep their products tidy. Deposits and prepayments received from customers must be kept in dedicated local escrow accounts.

As of the end of September, Shanghai had 13 online bike-sharing companies, and the number of bicycles in service was about 1.78 million, of which some 600,000 were e-bikes.