(Yicai Global) Nov. 23 -- In order to encourage companies to go public, the municipal government of Nanchang in China's southern province of Jiangxi has promised to award firms who successfully list up to CNY2 million (USD303,366).

The government confirmed that companies will receive the maximum cash incentive for listing on the main boards of overseas stock markets. Executives at companies going public in China will be awarded the equivalent to 0.2 percent of proceeds raised up to a maximum of CNY1 million, state-owned news agency Xinhua reported today.

Using the incentive, the local government hopes to encourage market-oriented operations, such as mergers and acquisitions, refinancing and other equity finance. Companies refinancing through equity financing will see executives bag 0.1 percent of the total proceeds, with an additional 0.1 percent up for grabs if the proceeds are reinvested in Nanchang. The cumulative total of the refinancing bonus may not exceed CNY1 million.

There are more than 20 listed companies in Nanchang, covering the automotive, food and beverage and biochemistry sectors, among others.