SHANGHAI'S software industry grew 25.1 percent in the first nine months of this year, despite the global financial crisis, government officials said yesterday.

Shanghai will adopt locally designed software in Metro systems and Chinese-designed aircraft and aims to encourage the software industry's development in the current tough environment. In the first three quarters, the revenue for the local software industry was 73.88 billion yuan (US$10.82 billion), a 25.1-percent growth year-on-year, the Shanghai Municipal Economy and Informatization Commission said.

"The industry will certainly be affected by the macro environment and we should prepare for the future as soon as possible," said Shao Zhiqing, vice director of the commission.

Software enterprises, academic institutions and related industry clients established an alliance in Shanghai yesterday to boost home-grown software. The alliance consists of 20 organizations, including China Standard Software Co and Donghua University.

Shanghai's Metro system has adopted locally designed software at a third of the cost of the previous system, the commission said.

More Shanghai projects will adopt the software, Shao said without elaborating.

The Shanghai government is also negotiating with the tax bureau to help related businesses win earlier tax rebates.

Shanghai supports integrated circuit and software industries and approved companies are entitled to tax rebates.

Some companies, however, have complained it takes them up to six months to receive the rebate.