Xi Jinping. Photo: Flickr Commons
Xi Jinping. Photo: Flickr Commons

Chinese President Xi Jinping has pledged to help privately-owned listed companies survive “share pledge” loan risks and promised further tax cuts and financing support, Yicai.com reported.

President Xi hosted a symposium for private entrepreneurs in Beijing on Thursday night, offering reassurances to businessmen that private enterprise still plays an important role in China’s economic and social development.

The meeting aimed to boost the confidence of private companies amid the backdrop of recent concerns that state-owned enterprises may suppress the development of private firms, since SOEs have bailed out some private listed firms amid the A-share rout.

For promising private companies, local governments can create a rescue fund to provide necessary financial aids, Xi said.

For private enterprises that have a risk of shares being sold-off, relevant parties should come up with special measures to take some pressure off “share pledges,” and avoid a transfer of enterprise ownership.

In terms of tax and fee reduction, it was first proposed that small and micro enterprises and technology start-ups receive exclusive tax exemptions.