ANNOUNCEMENT 24 Dec 2018

December 24th, 2018 - The provincial authorities of China's Fujian Province released a document containing information about several government support measures.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Fujian Provincial Government, December 24th, 2018. (中共福建省委 福建省人民政府 关于加快民营企业发展的若干意见)
http://gxt.fujian.gov.cn/zc/zxzcfg/sjzcfg/201812/t20181226_4725672.htm

Inception date: No inception date

Financial grant

Included in the December 2018 'Opinions on Accelerating the Development of Private Firms' from the Fujian provincial government were details of various financial support measures that would be made available to private firms.

Specifically:

  • Land use rights purchase reduced to 70% of standard price;
  • USD 2.17bn (CNY 15bn) in 'bailout funds';
  • USD 290m (CNY 2bn) in 'bailout loans';
  • USD 1.44bn (CNY 10bn) of funds to help private firms 'cross the bridge', i.e. solve short term debt repayment problems;
  • USD 72,400 (CNY 500k) one off prizes for newly identified 'business technology hubs' and R&D institutions;
  • USD 434,000 (CNY 3m) subsidy to fund M&A loans.

Various other less concrete instruments are mentioned (e.g. 'reduce electricity prices for private firms'), but due to the lack of detailed information, these are not included here. Please see the original announcement for full details.

Only Chinese privately-run firms are eligible for the measures included in the document.

Due to the lack of sectoral focus, this is classified as a horizontal measure.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A