The reform on the registered capital system was launched in China on the first day of this March. On August 9, the Shanxi Provincial Administration of Industry and Commerce released an analysis report on the market players in the province’s registered capital system reform. The report has seen sheer growth in terms of the province’s various market players, while privately-owned businesses enjoy ample growth and are mainly engaged in the tertiary industry.
Privately-owned business has most obvious growth
From March to May, newly-added registered capital reached up to 92.34 billion yuan ($15.01 billion), an increase of 74.44 percent compared to the same time last year. The most evident growth was witnessed in newly-registered private enterprises, which amounted to 16,827, up 60.15 percent year-on-year.
More than one-third of newly registered companies are located in Taiyuan
Company system enterprises, as the focus of the registered capital system reform, were promoted most by the reform.
According to the report, Shanxi has welcomed 15,179 newly-registered company system enterprises since the first day of March to the last day of May, an increase of 77.24 percent compared to the same period last year.
Moreover, there were five cities in the province with newly-registered enterprises totaling more than 1,000. The province’s capital of Taiyuan pulled ahead of 10 other cities in Shanxi with a figure of 5,224.
The registered capital of the newly-established enterprises increased 108.04 percent compared to last year to reach 83.21 billion yuan. Four cities, including Taiyuan, Yuncheng, Linfen and Changzhi, were in the first four places in terms of total newly-registered capital, especially the city of Taiyuan, whose newly-registered capital totaled nearly 20 billion yuan.
Most market players engaging in the tertiary industry
Among all the newly-established company system enterprises, most of them were players in industries like “transportation, storage and postal services” and “rental and commercial services.” Compared with the province’s traditional advantageous industries, namely the mining and manufacturing industries, the players in the tertiary industry improved evidently.
Moreover, many enterprises in non-financing guarantee, investment guarantee, investment consulting, investment management and finance management were registered from the start of the reform. Those enterprises were noteworthy for the high risk of illegal financial practices. Therefore, Shanxi will further standardize such businesses.
