Guangzhou's Tianhe district recently launched a three-year action plan (2023-25) in a bid to accelerate the establishment of a gradient system for cultivating high-quality enterprises.

According to the plan, the district will add over 1,000 new enterprises above the designated size every year, three to four listed enterprises, two national "little giant" enterprises, and one to two innovative unicorns. The average annual growth rate of newly recognized high-tech enterprises is targeted to exceed 10 percent.

An enterprise above the designated size refers to one with annual sales in excess of 20 million yuan ($2.91 million). "Little giant" enterprises are those specializing in niche industries that apply cutting-edge technologies and have very strong growth potential, while a unicorn is a startup valued at more than $1 billion within 10 years of its establishment.

Tianhe is dotted with high-rises. [Photo/thnet.gov.cn]

Tianhe will open a so-called green channel to fast track the upgrading of businesses from Hong Kong and Macao to foreign-funded enterprises, and support the transformation of businesses operating in the wholesale, retail, and catering sectors to the status of enterprises.

It will also develop direct financing and encourage enterprises to expand their financing in the form of IPOs, refinancing and bonds. Moreover, financial institutions will be supported in their bids to win loans to facilitate mergers and acquisitions.

For enterprises that plan to pursue joint-stock transformation, Tianhe will match them with businesses offering the professional services they need, such as like securities, accounting and law firms.