Chongqing- Several financial-related departments in Chongqing jointly release fiscal policies for a stable economy, especially for small and micro enterprises and individual businesses. Reducing rates and issuing capital subsidies and incentives are all included.
“A large number of enterprises, especially small and micro enterprises and individual businesses, are experiencing tight cash flow,” said an official from Chongqing Financial Bureau. “The government needs to provide more specific fiscal policies to boost the market confidence.”
Qualified individual businesses and small and micro enterprises could apply for start-up loans, the maximum amount of 200,000 yuan (about 29,699 U.S. dollars) and three million yuan, respectively, and part of the interest will be covered by the Financial Bureau.
Meanwhile, the government will provide emergency capital of up to 80 million yuan to new agricultural enterprises, key industrial enterprises, and growing enterprises struggling to repay loans.
To young leaders in rural revitalization or agriculture-related enterprises, financial institutions are encouraged to provide loans of up to three million yuan with an annual interest rate of no more than 5%.
In terms of agricultural insurance, the government will provide premium subsidies to back up the characteristics of relevant products.
This year, Chongqing has achieved a new record high for listing companies, with five new listed companies cultivated, six companies on the waiting list, and nine under review. This year, the number of initial public offerings (IPOs) and secondary equity offerings (SEOs) has reached 28.84 billion yuan, a 94.6% increase from last year.
Furthermore, the government offers up to 8 million yuan incentives to companies listed on domestic and foreign stock exchanges.
In particular, SEOs of listed companies are rewarded with 5% of net financing up to 1 million yuan. Mergers and Acquisitions (M&A) of listed companies will be rewarded with 5% of the actual transaction volume up to 1 million yuan.
To serve technological innovation, the first major technical equipment (set) that meets the requirements will be subsidized, with a maximum of 5 million yuan per equipment.
According to the policy, the government encourages private equity investment funds to invest in scientific and technological innovation enterprises. Amounts up to 10 million yuan will be awarded to the fund manager for qualified equity investments following 1% of the investment amount.
“This coordinated fiscal and financial support policy is an important measure to stabilize the economy against the backdrop of the pandemic,” said Shang Kewen, a Chongqing Technology and Business University professor. According to Shang, this is highly targeted, focusing on key industries such as manufacturing, green and low-carbon, rural revitalization, and technological innovation.
“Small and micro enterprises are receiving timely assistance from the effective implementation efforts,” said Shang. “We believe these policies will effectively contribute to the economy’s steady recovery.”