(Yicai Global) Dec. 5 -- Shenzhen authorities have put forward four programs to provide combined funding of CNY400 billion (USD58.4 billion) for private firms in the southern Chinese city.
The city's municipal government has put forward four plans, each worth CNY100 billion, according to a statement. The plans include assistance with cost-cutting, new bank loans, bond issuance and a fund aimed at stabilizing growth in the sector.
The government aims to help private players reduce costs in productions and management, resolve lending difficulties and costs involved, stabilize effective long-term growth and reduce development risks while optimizing the policy environment, the statement said.
Specific measures include lowering employers' contribution rate for the first bracket of basic medical insurance by 1 percentage point and raising the scale of the fund pool for small and medium-sized companies' bank loan risk compensation from CNY2 billion to CNY5 billion. Authorities also plan to lift the upper limit for loan risk compensation and expand the compensation coverage to include small and micro-business owners and individual industrial and commercial households.
The government also aims to provide CNY10 billion in funding to boost credit across eligible financing guarantee institutions, strengthen support for private companies' domestic listings and encourage capable private firms to list overseas.
China's central and local government have begun to issue various policies to support the private sector over the last month.