"The Opinions of the Zhongshan Municipal People's Government on Further Promoting Companies to Go Public" was issued on August 12. The Opinions defined the listing objectives of Zhongshan. Most notable among these listings are that the number of domestic and overseas listed and NEEQ-listed companies in Zhongshan shall reach 130, the cumulative funds raised by direct financing shall reach 100 billion yuan, and Zhongshan shall be built into a more developed area within the capital market of Guangdong by 2023.
According to the Opinions, Zhongshan will further improve its service mechanism to provide efficient, smooth, reliable and convenient services for the listing of the city's companies.
In addition, Zhongshan will reward companies according to their listing progress and the specific financing amount, with a single subsidy of up to 5 million yuan.
A one-time subsidy of 5 million yuan will be given to those companies successfully listed on the science and technology innovation board of the Shanghai Stock Exchange.
The Opinions project will grant subsidies on four levels according to the amount of funds raised by the initial public offering of the company and its investment in Zhongshan. A subsidy of 5 million yuan will be given if the amount raised and invested is more than 2 billion yuan.
A one-time subsidy of 2 million yuan will be given to the enterprises that are successfully and directly listed on the main board of Hong Kong (H shares). A subsidy of 1 million yuan will be given to an enterprise that is transformed into a limited liability company and successfully entered the National Equities Exchange and Quotations (NEEQ) for listing, quotation, and transfer.
According to the amount raised, different levels of subsidies including 1 million yuan, 2 million yuan, and 5 million yuan will be given to Zhongshan listed companies realizing refinancing in the capital market with the raised funds invested in Zhongshan through additional issuance of new shares, rationed shares, issuance of corporate bonds, and other means.
Companies can also receive subsidies in other situations. For example, a one-time subsidy of 2 million yuan will be given to an enterprise listed in the manner of back door listing and moving its headquarters to Zhongshan.