This chapter discusses the relationships between Shanghai’s local public finance and the local enterprises that belonged to the Shanghai Municipal Government, paying particular attention to the category of “Enterprise Revenue” in the fiscal revenue and the fiscal expenditure of Shanghai for local enterprises, most especially Economic Construction Expenditure. A careful analysis based on the fiscal statistics of Shanghai here helps shed light on the dramatic changes that occurred in the municipality’s fiscal structure in terms of the relationship between the Shanghai Municipal Government and the local state-owned and public-private jointly-owned enterprises after the socialist transformation in 1956 and, beyond that, in the wake of the decentralization policy in 1958.