Xinghua city in Jiangsu province has established a mechanism allowing Xinghua State-owned Assets Investment Holding to invest in local townships, in a bid to create a new engine for the development of the township economy there.
The mechanism is being invested in by the company to reactivate idle factories as well as inefficient land in townships and then convert them into factory buildings and industrial parks.
One example is the Zhongbao Health Food Technology Park, which broke ground on June 1. It is being funded and constructed by Xinghua State-owned Assets Investment Holding, with its land provided by Zhongbao town.
Zhongbao town. [Photo/WeChat account: xinghuafabu]
Zhongbao town will then enjoy the benefits of no less than 10 percent of the land transfer income, full rental income for the first three years after the building of the factory and the tax revenue generated from the businesses that are based there.
Another case involves manufacturer Xinghua Rongcheng Precision Casting, which was located in Xinduo town and went bankrupt many years ago. In January last year, Xinghua State-owned Assets Investment Holding acquired its 43,000-square-meter factory and the town then attracted three projects to settle there for production, revitalizing the idle factory.
Overall, during the past three years, the investment company has established cooperative relationships with 23 townships in the city and has cooperated in the construction of over 30 projects, including eight industrial park projects.