Shanghai has pledged to continue supporting investment by offshore private equity funds in local technology firms and may increase quotas for such purchases, Mayor Gong Zheng announced. Foreign asset managers will be given more freedom in private equity and venture capital investments as the city aims to boost growth in its financial and technology sectors amid geopolitical tensions and regulatory challenges. Investment in Chinese start-ups has declined sharply, with funds raised dropping from a peak of USD132.7bn in 2021 to USD25.7bn in the first half of this year. Shanghai attracted USD10.2bn in foreign direct investment during the first half, down 20% year-on-year. The city’s economy grew 4.8% last quarter, below the national average of 5%, with Typhoon Bebinca potentially affecting annual growth targets.