(I) Increasing Subsidies for Investments in Industrial Fixed Assets
In 2023 and 2024, industrial enterprises in Xiamen that meet the criteria for capital augmentation and production expansion projects (including technological upgrades) are eligible for a subsidy of up to 10% based on the amount of their fixed-asset investment for the relevant year, with the maximum subsidy set at RMB 30 million. Enterprises that are included in the Multiplication Plan for the Advanced Manufacturing Industry and are implementing a project with a total investment of RMB 500 million or more are eligible for a maximum subsidy of RMB 60 million.
(II) Enhancing the Technology Innovation Fund
Xiamen will enhance the Technology Innovation Fund to support capital augmentation and production expansion, technological upgrade, and green and low-carbon projects that meet the criteria. Support will be extended to industrial or software/information enterprises that fulfill certain R&D investment conditions. Financing support will be provided for fixed-asset investments. Specifically, a project may secure a loan of up to RMB 500 million or equivalent to a maximum of 90% of its total project investment. Enterprises will receive support in the form of credit loans and additional credit for their R&D investments. Specifically, an existing enterprise may secure a loan of up to RMB 50 million or equivalent to a maximum of 50% of its R&D expenses from the previous year, and a newly registered enterprise may secure a loan of up to RMB 10 million. The financing cost paid by enterprises to the Technology Innovation Fund is fixed at 2% per annum, and a maximum financing period of 5 years is permitted.
(III) Expanding the Scale of the Credit Enhancement Fund for Micro, Small and Medium-sized Enterprises
Support will be provided for small and medium-sized enterprises in Xiamen, and specialized sub-fund will be established in key sectors such as advanced manufacturing, dual circulation, culture and tourism, as well as for first-time and follow-up loans. An enterprise may secure a loan of up to RMB 30 million, and a maximum financing period of 3 years is permitted.
(IV) Establishing a Supply Chain Collaboration Fund
A Supply Chain Collaboration Fund of RMB 5 billion will be established, with RMB 2.5 billion for an Industrial Enterprise Supply Chain Sub-Fund and the remaining RMB 2.5 billion for a Trade and Commerce Enterprise Supply Chain Sub-Fund. With these funds, financing support will be extended to chain-leading enterprises and their collaborators that are included in the “White List”, for the purpose of promoting collaborative production expansion with upstream and downstream supply chain enterprises. Specifically, industrial enterprises will receive financing support based on the value of contracts or orders between chain-leading enterprises and upstream and downstream supply chain entities. This support will take the form of a fixed financing cost of 2% per annum, with a maximum financing period of 3 years, and a single enterprise may secure maximum financing of RMB 50 million. Trade and commerce enterprises will receive financial support based on the value of the outsourced processing contract signed by the chain-leading enterprise or as a certain percentage of the value of its transaction with an upstream or downstream enterprise. This support will take the form of a fixed financing cost of 2.5% per annum, with a maximum financing period of one year, and a single enterprise may secure maximum financing of RMB 200 million.
(V) Establishing an Advanced Manufacturing Industry Fund
An Advanced Manufacturing Industry Fund, totaling RMB 10 billion, will be established, with RMB 5 billion for the initial phase. This fund will extend support, in the form of equity investment, to facilitate capital augmentation and production expansion in the advanced manufacturing industry. Through methods like direct investment in projects, investment in mergers and acquisitions, and procurement of an equity interest in market-oriented sub-funds and secondary funds (S-funds), this fund will stimulate private capital to invest in the equity of advanced manufacturing enterprises.
(VI) Establishing an Industrial Chain Investment Promotion Fund
An Industrial Chain Investment Promotion Fund of RMB 5 billion will be established, focusing on the “4+4+6” modern industrial system. With project implementation as a prerequisite, this fund will be geared towards attracting projects from overseas that possess high levels of economic contribution, growth, and added value. Additionally, it will cater to locally based national-level “professional, specialized, distinctive and innovative” SMEs and high-tech enterprises. Operating under the “investment-led attraction” model, this fund will attract and nurture high-growth projects, thereby expanding effective industry investments. The Investment Promotion Fund may have an equity interest of up to 30% in the project following the capital infusion. As a significant incentive, if the local economic contribution of the project facilitated by the fund exceeds a specified multiple of the government’s financial input, the General Partner (GP) of the fund is eligible for additional rewards, including the transfer of excess returns.
