Direct financing channels will be expanded for business startups, including those with great development potential but yet to earn profits which will be supported in going public, according to a State Council guideline released on Wednesday.
The guideline was adopted last week by the central government and released on Wednesday to upgrade China's campaign of promoting entrepreneurship and business startups.
According to the document, eligible technological startups will be supported in their listing on the National Equities Exchange and Quotations and regional equity markets.
Technological small and medium-sized enterprises and startups will be supported to issue bonds, while pilot bond programs for startup and innovation-driven companies will be expanded. Internet equity financing will be regulated to give small and micro-sized enterprises and newly-registered enterprises more channels of financing.
Meanwhile, legislation and regulations related to the capital market will be improved to allow technological companies to adopt a management structure in which differentiated rights are given to the same amount of shares, the document said.
It was one of the 34 clauses listed in the document, which said entrepreneurship and business startups have played a vital role in economic transformation, employment expansion and the improvement of people's lives.
The Chinese economy is shifting from high-speed to high-quality growth, setting new requirements for entrepreneurship and business startups, it said. The guideline aims to further carry out the innovation-driven development and stimulate market vitality and social creativity to achieve high-quality development.
The 34-clause guideline sets six major targets, namely to comprehensively upgrade services for entrepreneurship and startups, substantially improve employment, transform technological achievements into real products, build a number of hubs for high-quality startups based on current national demonstration zones for independent innovations, integrate the innovation value chains among large and small enterprises, as well as to establish a number of international centers for startups and innovation.
