Shaanxi launches $730m fund to improve financing for private firms

Source:Global Times Published: 2019/1/8 18:48:39

A view of a governemnt office at Northwest China's Shaanxi Province. File photo: VCG :

Northwest China's Shaanxi Province will launch a bailout fund worth 5 billion yuan ($730 million) for private enterprises, a move intended to ease their financing difficulties and fulfill one of the government's recently announced policies to support private economy.

The local government also aims to increase the proportion of loans to private enterprises to at least 50 percent of all new corporate loans provided by banks within three years, according to a statement released by the provincial government of Shaanxi on Tuesday. 

The bailout fund is to be launched by the provincial government in cooperation with provincial-level State-owned enterprises, financial institutions and brokerages. 

Shaanxi is among many local governments in China to have launched bailout funds to try to help private enterprises with financing crunch.  

China is strengthening its efforts to support sector development through a series of policies. For example, North China's Tianjin has introduced 19 new policies aimed at helping private companies, by reducing taxes and encouraging innovation and market expansion, reported earlier this month. 

From October to mid-November in 2018, more than 10 provinces have put forward government-led bailout funds, including South China's Guangdong Province and East China's Shandong Province, domestic news site reported.

Newspaper headline: Shaanxi launches fund for private companies


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