Taizhou takes measures to boost equity investment

An aerial view of Taizhou city. [Photo/WeChat ID: tzfabu]

The city of Taizhou in Jiangsu province recently unveiled a policy to boost high-quality development in its equity investment sector.

This new policy details a string of measures to accelerate the agglomeration and development of high-quality equity investors, which will fully leverage the pivotal role of the capital market in promoting technological innovation. This will help accelerate the transformation and upgrading of the real economy.

Some of the measures include supporting the establishment of new equity investment institutions, encouraging them to grow bigger and stronger, and attracting qualified foreign partners to settle and develop businesses in the city.

Local authorities will offer equity investment funds rewards that are in line with their raised capital. The more actual capital that is raised, the higher the reward percentage will be, going up to 0.5 percent of the actual funds raised.

The measures encourage equity investors to invest in Taizhou and provide support and rewards for those who invest in non-listed enterprises, especially in startups, small companies, and sci-tech firms. The maximum reward in this regard can reach 10 million yuan ($1.42 million).

For equity investment management institutions that invest in start-ups, a maximum reward of 5 million yuan per year will be given.

Equity investors are also encouraged to invite industrial projects to settle in the city. A one-time reward of up to 500,000 yuan will be granted to equity investment funds that acquire or invest in target enterprises after they start construction or after they begin production.

The policy also urges government investment funds to optimize their management systems by reducing their threshold return rate, giving management agencies full autonomy in decision-making, and improving their mechanisms for selecting fund managers.

According to the document, the city will house over 50 equity investment institutions by the end of 2025, with a management fund of over 60 billion yuan and a registered fund of over 100 billion yuan. A relatively complete equity investment market system will be launched, and efforts will be made to build the city into a provincially influential highland in this sector.