(Yicai Global) Sept. 10 -- Shanghai plans to nurture or introduce more than 200 industrial software companies, as well as about 10 listed firms, by 2023 to enlarge its industrial software market to more than CNY50 billion (USD7.77 billion).

The Shanghai Economic and Information Technology Commission released a three-year industrial development plan on its website today. The city will cultivate five key industrial software firms, worth over CNY1 billion each, by 2023, according to the blueprint.

The plan requires central state-owned enterprises, local government-backed companies and large manufacturing firms to spin off their core technology businesses into independent industrial software companies to meet the industry’s needs.

The blueprint supports qualified industry leaders to conduct mergers and acquisitions while encouraging funds to invest in industrial software companies to strengthen the linkage between capital markets and software firms. It also strongly favors the listing of industrial software firms on the Shanghai Stock Exchange’s Star Market.

The plan will increase backing for the industrial software sector via special funds for high-quality industrial development and funds for strategic industries, and guide financial institutions and social capital to support the sector’s development.

It also encourages financial institutions to improve their financial services, develop innovative products and increase financial support to industrial software firms.

Editor: Peter Thomas