A PORTION of the contents in this year’s report on government work delivered by Premier Li Keqiang on Friday at the annual session of the National People’s Congress are related to Shenzhen’s development.

One of the highlights in the report is that the country will reform the ChiNext stock market and pilot a registration-based IPO system.

The plan, which was just passed in a central meeting held last month, is said to be an important move to strengthen reform of the capital market, refine fundamental mechanisms of the capital market and to improve the capital market’s functions.

This is also a response to what has been said in the guidelines for supporting Shenzhen to build the pilot demonstration area of socialism with Chinese characteristics released by the Central Government. The guidance also includes better systems for the listing, refinancing and merger and acquisition of the ChiNext stock market and creating conditions to push forward the reform of the registration-based IPO system, according to Shenzhen Special Zone Daily.

This will not only benefit Shenzhen, but the whole country’s capital market and will stabilize the economy, said the Daily.

In terms of support for high-tech innovation, the report suggested speeding up construction of national laboratories, restructuring the system of national key laboratories, and developing private R&D institutions.

At present, Shenzhen is one of four cities in the country that is a home to a comprehensive national science center. This will attract more world-class scientists to the city and enhance the city’s capabilities for innovation.

Further reduction on corporate burden is another focus of the report. Detailed measures include reducing the rate of value added tax and the share of employees’ basic old-age insurance paid by enterprises and encouraging banks to substantially increase credit loans, first-time loans, and loan renewals without repayment of principal for micro and small-sized enterprises.

More than 90 percent of the firms in the city are micro, small and medium-sized. These policies will bring in hopes to them.

The report also mentioned the role of leading cities and city clusters in an effort to increase employment and cultivate new industries. It was said that Shenzhen will further include Heyuan and Shanwei city to an area circle originally comprised of Shenzhen, Dongguan and Huizhou. The whole area circle accounts for nearly 40 percent of Guangdong’s total GDP.

At the same time, the report urges efforts to speed up the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and to actively leverage the role of foreign capital by giving free trade zones more autonomy.

Shenzhen this year will further develop the China (Guangdong) Pilot Free Trade Zone Qianhai & Shekou Area of Shenzhen to open up the city even more.  

(Wang Jingli)