Guangdong firms spend big on upgrades

Guangdong’s 25,000 private companies have invested more than RMB99 billion in recent years on their “intelligent transformation”, according to a survey. That is equivalent to RMB4 million per company.

The survey, by Southern Metropolis Daily and the provincial Department of Industry and Information Technology, showed 60% of interviewees said they had conducted “smart upgrades” in the past three years. Most chose to invest in strategic new industries like vehicle manufacturing (38%), new generation information technology (31%), high-end manufacturing and new materials.

More than half of respondents said they believed government financing policies had helped, with more than one-fourth saying they had already benefited. Official data shows that last year, private enterprises based in the province took out RMB471.8 billion in loans, which accounted for more than 60% of all new loans. That momentum continued into Q1, with an additional RMB206.8 billion of loans given out, up 16% YoY.

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