In an effort to prevent capital chain rupture in large backbone enterprises, the authorities have decided to offer discounts to these companies on their commercial loans, the Shanghai Securities News reported Wednesday, citing an industry insider.
According to the source, the government will step up financial support to key enterprises and clear the way for companies conducting cross-region and cross-industry mergers and acquisitions to obtain project approval, loans, favorable taxation policies and approval to issue corporate bonds.
"The government encourages competitive enterprises to acquire and restructure laggard ones and to collaborate with each other," the insider said. "Co-operation between affiliated companies and between upstream and downstream companies is also encouraged."
For more details, please read the full Chinese coverage at:
http://paper.cnstock.com/html/2009-04/22/content_68760173.htm
(China.org.cn Yan Pei, April 22, 2009)
