(Yicai Global) Feb. 10 -- Shanghai has lately issued 28 measures to mitigate the influence of the novel coronavirus pneumonia epidemic, and these will pare companies' costs by CNY30 billion (USD4.3 billion), preliminary estimates hold, news that should afford some relief to most firms in the eastern Chinese megacity the city ordered back to work today after an unprecedented extension of China's Lunar New Year holiday.

Five of the 28 policies Shanghai released on Feb. 8 ease the burden on companies through rent and tax abatements. Operators of state property must waive rentals this month and next and perhaps longer for small and medium firms. The guidelines also let these diminutive players delay tax declarations for up to 3 months based on the effects of the pestilence on their businesses.

Several of the directives mandate that financial institutions offer support to sectors the epidemic has hobbled. Local commercial banks are urged to leverage central bank policy to offer loans at preferential rates to companies that make, transport or sell medical supplies and daily necessities in the fight against the scourge. Loan rates must be lower than 1.6 percent, and should be bundled with added financial subsidies.

Though startups are relatively flexible in responding to market changes, they are also at the mercy of environmental factors, Shanghai-based intelligent video system developer Video++ told Yicai Global. "Most companies are now facing difficulties with cashflows and labor costs, and the 28 policies' most practical help for us is to reduce rents and taxes."

Banks are also to offer refinancing or extend maturity periods for loans used as working capital in various sectors the contagion has sidelined, such as tourism, accommodation and catering, wholesale and retail, transport, logistics and warehousing, culture and entertainment and conventions and exhibitions.

Industrial and Commercial Bank of China will open green channels for loan approvals for medical and counter-epidemic material producers based on the blueprint, said Yang Jie, general manager of the inclusive financial department of the lender's branch in the financial and industrial hub of 24 million residents. For example, mask maker Shanghai Gangkai Purifying Products recently secured a CNY2 million loan from ICBC within 34 hours.

Most companies in Shanghai will resume work today, according to local arrangements, after the usually one-week Spring Festival vacation was prolonged to ten days, followed by another one-week hiatus during which office workers telecommuted. 

Editors: Dou Shicong, Ben Armour