Guangdong province published ten measures to support the private sector, as reported by Cnstock.com on November 7. Its provincial government emphasized to give equal opportunities and benefits to private companies as to state-owned enterprises (SOEs), especially for those in sectors such as education, health and elderly nursing. It encourages private investors and investment funds to invest in the public utility sector, including transportation and water energy. The government pledged to provide more legal support for the development of private business. It will also continue enhancing fundraising and reducing financing costs for such enterprises, as well as encourage financial institutions to expand financing channels through mechanisms such as debt rolling, receivables financing, equipment leasing and general financing.
Guangdong’s private sector has been developing robustly in recent years. Since 2014, the sector’s economic value added (EVA) increased by 8% YoY, reaching RMB2.44tr in 1H18. Specifically, the private businesses from the Pearl River Delta region contributed most to the EVA of the whole sector, which was RMB1.73tr in 1H18. On November 2, Chinese President Xi reaffirmed to provide more support for troubled private companies. Other regions in China are also committing to enhance the development of such a sector. For example, on November 5, Shanghai municipal government announced to set up RMB30bn in funds to ease liquidity pressures of listed firms and small and medium-sized enterprises (SMEs).