Plans to reimburse investors' losses

Shanghai surprised entrepreneurs when it issued a bold pledge to investors last February. Several government departments issued a joint document promising to repay up to 60 percent of the losses, or up to 6 million yuan ($880,000), incurred by any company on investments in Shanghai-based technology startups.

The move is part of the city's plan to become one of the country's main innovation centers.

Several departments of Guangdong's provincial government issued similar guidelines this year. They took effect in April.