Feb 11, 2019 (China Knowledge) - China's Hebei province will be introducing a new program to provide financial incentives to companies which are looking to go public to raise funds through equity markets as the government looks to promote greater financing for projects in the region.
The province currently aims to spend up to RMB 100 million a year in order to encourage more companies in the province to list on stock markets whether locally in China or abroad.
While, the proposed funding amount remains modest, the move by the government reflects a gradual change in attitudes among regulators towards opening up more financing channels to companies to help them expand after a multi-year crackdown on the country's "shadow-banking" system which had provided risky financing to many companies in the past.
Hebei is of particular interest due to its close proximity to the capital city of Beijing with President Xi Jinping having declared in 2017 for Xiongan in Hebei province to be the site of a new development zone that will become a hub for economy activity for the province as well as Beijing and Tianjin.
Earlier last month, the State Council also said the country may set up a stock market in Xiongan in order to increase direct financing in the zone.
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