FINANCE organizations were eligible for government subsidies only if their headquarters remained in Shenzhen for at least 10 years, according a regulation on finance development fund management released Wednesday.
If a finance organization breaks its commitment, it will be asked to return the money and the organization s credibility would be lowered, the regulation says.
This is to prevent organizations moving their headquarters to Shenzhen just for government subsidies, Thursday s Southern Metropolis Daily reported.
Shenzhen implemented a policy to encourage finance organizations to set up headquarter in the city in 2006.
The policy stipulates that finance company headquarters in Shenzhen with registered capital of more than 1 billion yuan (US$152 million) could be entitled to 10 million yuan in subsidies.
This was later increased to 20 million yuan.
The subsidies had attracted many finance companies but some had only nominal headquarters in Shenzhen for the subsidies and their operations were actually in Beijing and Shanghai.
Some companies moved headquarters frequently to different cities for subsidies being offered by local governments.
(Wang Yuanyuan)
