Wenzhou offers rewards to encourage more IPOs
According to the new policy, firms that carry out joint-stock reform will receive 50% of the local contribution
Wenzhou, an industrial port city in China’s Zhejiang province, has put forward rewards for enterprises that plan to conduct joint-stock reform or go public, Xinhua news agency reported.
For companies that carry out joint-stock reform, the government will offer a reward of 50% of the new local contribution made by the company over the previous year.
Among the latter, those who have signed contracts with brokerage, accounting or law firms, will have the reward increased by 30 percentage points.
For enterprises that have successfully listed and invested more than 50% of the funds raised in Wenzhou, the reward will be 5% of the company’s total initial financing.
For public companies which relocate the registry and pay taxes to the Wenzhou government, they will be treated the same as newly listed companies in the city and given a one-time award of no more than 10 million yuan.
The government will also subsidise companies even if they fail to pass the IPO review. At least 20% of the service fee paid to brokerage, accounting and law firms will be rebated by local fiscal departments, with a ceiling of no more than two million yuan.