The Shenzhen municipal government has put forward a massive 400 billion-yuan plan, aiming to better support the development of the private economy, Southern Metropolis Daily reported.

First, Shenzhen pledged to reduce the cost and tax burden of local enterprises by more than 100 billion yuan. For example, enterprises with social contributions for employee medical insurance will see that lowered by one percentage point, effective till the end of 2019.

Second, the government will expand the scale of the lending risk compensation fund pool to 5 billion yuan from 2 billion yuan, with the aim of covering small and micro enterprises. It will also boost new lending from banks to private companies to more than 100 billion yuan.

Third, the government will provide 10 billion yuan in credit enhancement funds for eligible financing guarantee institutions, and boost private enterprises’ new bond issuance to more than 100 billion yuan.

Lastly, the government will set up a stable development fund with a total scale of 100 billion yuan for promising private enterprises in line with the strategy of economic structure upgrades.