Shenzhen Opens Key Sectors to Private Investment with Stakes Over 10%

Deep News03-24

The Shenzhen Municipal Development and Reform Commission recently released the "Shenzhen 2026 Work Plan for Optimizing the Market-Oriented Business Environment." This plan focuses on four key areas: market access, factor support, fair competition, and government services, outlining 43 major tasks.

Addressing challenges related to market entry and exit, the plan provides detailed arrangements for these critical aspects for businesses. Regarding market access, Shenzhen has innovatively proposed optimizing the coverage of address codes. For enterprises operating in fixed locations within public spaces such as libraries, museums, parks, and rail transit systems, competent authorities will collaborate with grid management departments to assign address codes. This measure significantly facilitates business license applications and unlocks the commercial potential of public spaces.

For emerging industries, the city will accelerate the construction of a government regulatory platform for intelligent connected vehicles. Pilot programs in Nanshan and Bao'an Districts will establish unified standards for cross-district commercial operations, technical standards, and regulatory frameworks, promoting road network connectivity and mutual recognition of qualifications. Concurrently, Shenzhen will explore a "white list" filing management system for cross-border drones between Shenzhen and Hong Kong, safely and orderly advancing trial flights.

In broadening the scope for private investment, the plan supports private capital participation in projects with certain returns, such as railways, nuclear power, hydropower, oil and gas pipelines, and LNG import, reception, and storage facilities. For qualified projects, private capital ownership can exceed 10%. By optimizing short-term leasing procedures for government properties and opening water area resources to social capital, the plan aims to create more diverse investment opportunities and operational space for private investors.

Regarding exit mechanisms, the plan promotes the "One Thing" service for verifying enterprise bankruptcy information, facilitating information queries for bankruptcy administrators. Tax authorities will legally write off outstanding debts, breaking down information silos. Furthermore, a mandatory liquidation system will be established, and guidelines for business deregistration will be improved. The plan explores implementing tolerance and commitment-based methods for business closures and optimizes procedures for deregistering individual businesses, effectively addressing the difficulty of exiting the market.

The plan also introduces a series of precise and robust measures for factor supply. Spatial support becomes more flexible, encouraging consortiums formed by listed companies, "Little Giant" enterprises, and innovative firms to jointly acquire land. A替补 pool for enterprises to take over projects post-exit will be created, improving internal transfer and exit mechanisms for joint land acquisition projects. For commercial, office, and industrial park properties held by municipal state-owned enterprises, property management units are allowed to dynamically adjust rental pricing based on market conditions during contract periods, with streamlined procedures.

To reduce business operating costs, Shenzhen will conduct comprehensive rectification of the industrial space rental market, strictly cracking down on practices such as arbitrary price hikes, fees, cost allocations, unauthorized renovations, and subletting.

Financial support aims to be more inclusive. The city will accelerate the establishment of the third batch of "20+8" industrial cluster funds, focusing on major strategies, key sectors, and areas where the market does not function optimally, thereby supporting the modernization of the industrial system. For small and micro-enterprises, Shenzhen will further optimize the "Park Loan" mechanism, deepen financing对接 work, and establish a regular, long-term financing coordination mechanism to effectively meet genuine and compliant financing needs. Coordination between municipal and district-level loan risk compensation policies for small and medium-sized enterprises will be strengthened, encouraging qualified districts to expedite the introduction of management policies for loan risk compensation pools and expand the scope of compensation.

Support for talent and innovation resources becomes more considerate. Measures will be implemented to support young talents developing in Shenzhen, including providing 10,000 rental units at approximately 60% of market reference prices and offering preferential entrepreneurial spaces. To reduce innovation costs, Shenzhen will create an intelligent computing power scheduling platform for the smart city and increase the distribution of "Computing Vouchers" and "Training Vouchers." The supply-demand对接 mechanism for major scientific infrastructure and large-scale research instruments will be improved to enhance open sharing convenience.

To address market barriers in the bidding sector, the plan proposes establishing a mechanism to prevent malicious low-price competition and formulating fair competition review guidelines for bidding, aiming to break down local protectionism and market barriers. Regulations on payment to small and medium-sized enterprises will be strictly enforced, with comprehensive investigations into government arrears to protect the legitimate rights and interests of SMEs.

In standardizing law enforcement involving enterprises, the application of the "Law Enforcement Supervision Code" will be comprehensively strengthened, strictly implementing the "Scan Code to Enter Enterprise" system. The "Suixin Comprehensive Inspection" program will be deepened, striving to increase the proportion of non-on-site inspections to 40%. The credit constraint and rehabilitation mechanism will be refined to prevent excessive punishment for dishonesty, with proactive alerts for abnormal credit information and encouragement for credit rebuilding. Court enforcement procedures will be optimized, and mechanisms for resolving disputes involving the private economy will be improved to enhance efficiency in conflict resolution.

The plan emphasizes leveraging digital and intelligent means to transition government services from "able to handle" to "well-handled, easy to handle, and fast to handle." A unified municipal government intelligent application system under the "Shen Xiao i" banner will be built, targeting over 80% intelligent coverage for key government service scenarios. Export tax rebate review efficiency will be提升, maintaining the average processing time for normal rebates within 3 working days. A "non-feel" handling process for multi-person household water and gas discounts will be implemented, allowing one-time application with zero materials. A "one-time" process for returning subsidized housing will merge the return application with fee inquiry and payment, significantly improving efficiency.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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