China sees continued surge in new firms

BEIJING - The number of newly founded companies in China continued to surge on government efforts to streamline the process for starting businesses, official data showed on Wednesday.

About 844,000 new companies were registered in the first quarter of the year, rising 38.4 percent from the same period last year, according to data from the State Administration for Industry and Commerce.

The registered capital of these new companies totaled 4.8 trillion yuan ($783 billion), up 90.6 percent year on year.

China lifted restrictions on minimum registered capital, payment deadlines, down payment ratios and cash ratios of registered capital on March 1 in a move aimed at encouraging start-ups and energizing the economy.

Between January and March, the number of newly registered firms in the tertiary industry went up 41 percent to 677,000, accounting for 80.2 percent of new companies.

"China's business reforms have prompted social capital to invest in emerging industries and the service sector, which is conducive to ongoing economic restructuring," noted Chen Dun, associate professor with Beijing Technology and Business University.