Number of China's New Firms Grew 13% in Six Months on Service Sector Traction
Liao Shumin|Liu Jing
/SOURCE : Yicai
Number of China's New Firms Grew 13% in Six Months on Service Sector Traction

(Yicai Global) Aug. 8 -- The number of China's newly set up firms rose in the first half of the year on residents' accelerated entrepreneurial interest, particularly toward the sector of services. 

Some 3.2 million new firms were established, with a 13 percent increase from last year, the State Market Regulatory Administration reported yesterday. Since July, some 1.8 million companies were registered, which is 9 percent more than last year. 

The number of freshly established service businesses jumped 14 percent from last year as the shift from manufacturing to service-based economy gained traction. The emerging service industry continued to grow rapidly, as new businesses such as healthcare and social work increased 50 percent, education 46 percent, and scientific research and technology services 24 percent. However, the number of freshly registered financial companies fell 4.4 percent.

Part of the increase can be explained by the loosening regulation involving registration of foreign-invested firms in China. In the first six months, some 45,000 new foreign firms sprung up in the country, a jump of 97 percent from the year before. Most of these were located in the southern province of Guangdong, which has tried to attract more business by introducing progressive policies for entrepreneurship, and thereby the region made up 55 percent of all new foreign firms in the country. 

Editor: Emmi Laine 

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Keywords: New Markets , New Enterprises , Foreign-Invested Enterprises , Guangdong-Hong Kong-Macao Greater Bay Area