According to Chinese media, China's State Council yesterday decided on a couple of small steps to support economic growth.
- Setting up a fund of up to CNY60bn (0.1% of GDP) to encourage the growth of small and micro-businesses.
- Measures that lower the initial capital requirement for fixed-asset investment projects (mostly infrastructure). The aim is to lift investment growth.
The fund aims to 'support small and micro-sized businesses in the initial stage as seed investment'. The government also aims to attract more private capital to boost small businesses as private investors in the fund will be given priority over government-backed investors in receiving dividends.
The steps follow comments from premier Li Keqiang over the weekend saying that 'China will use more policy weapons to achieve its growth targets for the year'. He also stated that 'it is necessary to provide more public goods and services and to encourage mass entrepreneurship and innovation to boost the growth momentum' .
To Read the Entire Report Please Click on the pdf File Below.