HAIKOU, September 6. /TASS/. The Hainan authorities will actively encourage initial public offerings (IPOs) of subsidiaries of leading Chinese and foreign companies registered on the island, reported www.chinanews.com.
According to the news outlet, these are strategically important enterprises, the activities of which are among the priority areas of Hainan's free trade port development. In connection with the need to increase the capitalization of local industries, the regional administration approved the project "On financial support for measures to deepen comprehensive reforms and openness on Hainan."
According to the document, thanks to these measures, the government expects to boost the formation of production chains and the modernization of industry. At the same time, the Hainan leadership intends to enhance tourism sector, the sphere of modern services and advanced technologies, and tropical agriculture.
The provincial administration, as noted in the project, is going to promote companies' IPO "on a planned and scientific basis." Businesses intending to list their securities on stock exchanges in Shanghai, Shenzhen or Hong Kong will receive consulting support. To modernize key industries and increase their funding, the authorities will draw leading investment institutions.
On June 10, the Standing Committee of the National People's Congress (parliament) approved a bill that is expected to play a pivotal role in the development of Hainan's free trade port. In June 2020, the island's administration published a general development program, which provides for the gradual removal of restrictions and a decrease in the tax burden of companies involved in the province's economic activities. According to the new strategy, by 2025, an effective mechanism for stimulating sustainable and long-term growth will be formed on Hainan, providing for this region's active participation in international supply chains.