Guangdong Province plans to address issues such as difficulties of private enterprises in financing, market access, public service system construction, and equity market based private capital consolidation and to lower costs and burdens of enterprises in the next step.

 

With regard to the high market access threshold complained by many enterprises, Guangdong provincial government will further loosen the market access restrictions, accelerate implementation of the “three-in-one certificate” and “one license one code” policies of the business license, organization code certificate and tax registration certificate, promote application of the whole-course e-registration and e-business license, loosen restrictions on the domicile registration of newly registered enterprises according to the actual situation and facilitate the business registration. Efforts will be made to support private capital to participate in the state-owned enterprise merger and acquisition (M&A) and restructuring or disposal of state-owned “zombie companies” by means of making contribution, equity acquisition, convertible bond subscription, financial leasing and idle asset acquisition and other methods, and develop the mixed ownership economy and diversify equities.

 

In order to reduce burdens of enterprises, Guangdong will do a good job in meeting requirements of the action plan for cost-reduction through the supply-side structural reform and reduce about RMB194 billion of burdens of enterprises across the year. Measures will be taken to promote the “zero charges” of the administrative and institutional items of the province. From April 1, Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan and other cities will exempt 11 foreign-related administrative charges granted by the provincial governments and the rest cities will stop such charges from October 1 this year. The retained enterprise-related administrative charge items will be under the list management. No extra charges can be imposed except for those on the list.

 

It is emphasized that development of the private economy needs both numerous micro-enterprises and SMEs and large-scale backbone enterprises. Guangdong will give priority to guiding private enterprises to consolidate the private capital by means of the equity market, implement the cross-region and cross-sector M&A, and foster a batch of large-scale enterprise groups with strong market competitiveness. Efforts will be made to accelerate foster of a batch of private cross-border companies and promote large-scale private enterprises or private enterprise cartels to take part in the overseas investment of the Belt and Road and the overseas industrial park construction.

 

In order to improve the service quality of private backbone enterprises, Guangdong will open the online green passage for large-scale backbone private enterprises and try to shorten the time of processing the administrative items by 1/5.

 

Meanwhile, Guangdong will support establishment of provincial-level comprehensive and professional micro-enterprise and SME technology alliances of major industries and enhance coordinated innovation of large-scale enterprises, SMEs and micro-enterprises. The innovation capability construction plan for micro-enterprises and SMEs will be implemented to encourage conditioned private enterprises to establish R&D institutions.

 

According to the comprehensive calculation, in the following five years the private economy will grow by more than 8% on average and account for more than 56% of the total by 2020. And the province will have about 50 new private backbone enterprises with business revenue exceeding RMB10 billion.

 

Source: Translated from Invest Guangzhou, March 29, 2016