Financial burdens caused by the latest COVID-19 outbreak are being eased by 100 million yuan ($15 million) in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.

The Executive Committee released measures June 23 to reduce costs for Macao-funded enterprises operating in the Cooperation Zone by 60-percent for commercial cooling, water, and electricity consumption during the January-June period. Other Hengqin companies in the real economy receive 50-percent subsidies for such costs. The maximum is capped at 1 million yuan ($149,300) for an individual user and 3 million yuan ($448,000) for industrial parks and comprehensive operation entities.

Moreover, retail, catering, and profit-making service enterprises above designated size (with physical stores that operate normally and are listed in the Cooperation Zone) are eligible for up to 100,000 yuan ($14,930) toward epidemic prevention materials, and disinfection and sterilization services. This is for the first half of the year and at 60 percent for Macao-funded companies and 50 percent for other enterprises.

Hengqin financial island [Photo courtesy WeChat account: hengqinzaixian2021]

In addition, small and micro manufacturing enterprises, SMEs, and individual businesses in the service industry that lease State-owned assets and properties of Zhuhai City and the Cooperation Zone are exempted from rent for six months. Owners of shopping malls, commercial complexes, office buildings, industrial parks, scenic spots, and other non-State-owned properties are encouraged to reduce rent for tenants on the basis of equality and mutual consultation.

And, to promote local consumption, Hengqin will allocate 50 million yuan ($7.5 million) to support service industries hard hit by the epidemic. Covered by means of coupons and more are those involved in catering, retail, and tourism.

The Cooperation Zone will also increase financial support for enterprises with promising prospects but that are currently hindered by the effects of COVID-19 prevention efforts, and for SMEs, and individual business. The measures encompass renewal and extension of loans, expanded scope and increased limit of risk-compensation, lowered interest rates on loans, and more.

According to the implementation rules, "enterprises" include legal persons or unincorporated organizations registered and operating in Hengqin as well as registered or unregistered individual businesses actually operating in the Cooperation Zone. Macao-funded enterprises refer to legal persons or professional service institutions without legal personality established, participated in, or holding shares by Macao residents or legal persons in Hengqin. They should be registered and operating substantially in the Cooperation Zone.

The policies are in effect through Dec 31. Eligible enterprises shall apply within the allotted period in line with the requirements of further notices. At the same time, applicants can apply for other policy support from the State and Guangdong Province. In case the measures overlap existing policies of the same kind in the Cooperation Zone, the more preferential ones shall prevail.

The bail-out measures cover most market entities in Hengqin, support enterprises and individual businesses with financial subsidies during difficult times, and boost the vitality of the consumer market, according to a responsible person at the Hengqin Cooperation Zone Executive Committee.