Cash to help listed firms get through tough times

A bailout fund of 10 billion yuan (US$1.44 billion) for listed private enterprises in Shanghai will be fully established by the end of this month, according to the city’s State-owned Assets Supervision and Administration Commission.

Shanghai released a raft of measures on November 3 to alleviate financing difficulties and reduce operation costs for smaller-sized private companies after Chinese President Xi Jinping called for more support for private enterprises earlier this month.

Since the beginning of this year, some listed private companies have temporarily experienced liquidity difficulties. 

The establishment of the bailout fund will help them to tide over difficult periods as well as support the healthy and stable development of Shanghai's private economy, the city's SASAC said.

At the same time, the city will build a platform for communication and exchange to better promote capital combination, integrative development and the cooperation of state-owned enterprises and private companies.

The fund will increase the liquidity of key private enterprises such as industry leaders, large employers, and strategic emerging industries.

Five billion yuan of the bailout fund is now in place.