China to establish modern fiscal, taxation, financial system in Xiongan

BEIJING - China will accelerate the establishment of the modern fiscal, taxation and financial system in Xiongan New Area to boost its development, according to a guideline on deepening reforms and expanding opening-up in Xiongan, which was issued on Thursday.

The government will increase fiscal input to the Xiongan New Area for the construction and maintenance of infrastructure, interest payment on local government debt and industry fund injection.

The government will also innovate taxation policies to encourage high-tech companies to move from Beijing to Xiongan, broaden channels to raise capital for Xiongan development, and establish a stable and long-term fund-raising mechanism.

Greater efforts will be made to attract more Beijing-based private financial enterprises to move to Xiongan, according to the guideline.

The government also supports the establishment of the Xiongan Bank and will establish a financial supervision framework consistent with international rules in Xiongan New Area, while preventing systematic and regional financial risks.

In April 2017, China announced the establishment of Xiongan New Area, which, about 100 kilometers southwest of Beijing, spans three counties in Hebei province.