Closures of enterprises reaches peak in Zhejiang province

16 Feb '09

2 min read

According to the latest report on the industrial situation in Zhejiang province, the number of companies who have winded up their operations has hit a peak; the kind of which has not been witnessed in the last six years, while the number of new registered companies fell to all time low in the same time period.

A report released by the Industry and Commerce Administration Bureau of Zhejiang, 2008, states that, the total number of enterprises in Zhejiang Province is 681,000, representing 4.5 percent increase year-on-year, but growth rate fell by 1.29 percent. Of these, 520,000 are private enterprises, a year-on-year increase of 7 percent.

This increase in the number of private enterprises is faster than the average growth rate of the province, but declined y-o-y by 2.38 percent. The number of newly registered enterprises totaled up to 70,200 a drop of 10 percent when compared with the number of the previous year.

Up to now, the province has witnessed 302 enterprises suddenly closing and abandoning their business without informing the provincial authorities. At the same time individual and commercial business grew by 6.2 percent in setting up 317,000 companies in 2008, at the rate of nearly 100 per day.

The average registered capital of private enterprises in Zhejiang Province has reached 207 million Yuan, a year-on-year increase of 10 percent. Overall, production and operation problems of private enterprises in Zhejiang Province have been affected, though the province is yet to witness any mass closure of companies.

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