Guiyang promotes industrial transformation and upgrading

Guiyang, capital city of Guizhou province, will carry out a series of policies designed to improve industry in 19 different areas. The policies will remain in effect until Dec 31, 2022, according to the general office of the Guiyang people's government.

Enterprises which conform to transformation policies will be awarded 500,000 yuan ($726,628), 300,000 yuan or 100,000 yuan, depending on their scale.

The Guiyang industry and information technology commission has set up an initial fund of 2 billion yuan in order to guide the development of enterprises. The city government and its district governments will invest an additional 200 million yuan and 14.3 million yuan every year, respectively.

Up to 70 percent of the funds will be used as equity investment directly for enterprises which adhere to transformation policies and up to 30 percent of the funds will go toward sub-funds to invest in the stocks of other enterprises.

As for credit risk compensation, a cash pool was set up by the city's finance office, industry information technology commission, and science and technology bureau, in a bid to improve the financing environment for small and medium-size enterprises. Loan loss will be shared 80-20 between the cash pool and enterprises. 

Enterprises with their first nationally or provincially recognized demonstration base will receive a one-time award of 1 million yuan, 500,000 yuan or 300,000 yuan.

Furthermore, enterprises with a sales revenue of over 200 million yuan, 500 million yuan or 1 billion yuan, will receive a one-time award of 100,000 yuan, 200,000 yuan and 500,000 yuan, respectively.

Enterprises listed on the domestic main-board or abroad market, domestic small and medium-sized market and second-board market, and new over the counter market will be awarded with 10 million yuan, 5 million yuan and 1.5 million yuan, respectively.

Zhao Yandi contributed to this story