Shanghai is planning to earmark 30 billion yuan (US$4.35 billion) to help private enterprises experiencing financing difficulties in the current economic market, Yicai.com reported.

The Shanghai municipal government released a series of policies to promote the development of private enterprise on Saturday, following President Xi Jinping’s meeting with private entrepreneurs last Thursday.

Shanghai will set up a 10-billion-yuan bailout fund to invest in private enterprises that are in line with the agenda of upgrading economic structure and have market prospects. The goal is to increase the liquidity of industry leaders, major job providers and strategic emerging industry players.

Meanwhile, the government will guide banks to increase their credit supply to private companies, providing a total 10 billion yuan in credit and guarantee loans for more than 1,000 small and medium-sized enterprises.

Also, the government will gradually expand the financing guarantee fund to 10 billion yuan, and gradually cover not just SMEs, but also large and medium-sized private enterprises.