Guangzhou's Haizhu district announced two financial policies to support the growth of new innovation-based firms on Jan 9.

The first policy centers on the launch of a prepaid subsidy fund pool, the first of its kind in China which enables sci-tech companies to get subsidy funds before starting their business activities. It also enables companies settling in the district's venture capital cluster to gain subsidies rewards and rent allowances.

According to the policy, the newly-established sci-tech firms recommended by a specialized organization will receive a maximum investment subsidy of five million yuan ($774,000) and a 720,000-yuan subsidy for office rental. Seventy percent of the subsidy will be an initial payment with the balance to be paid depending on the development of the company, according to the local authorities.

The size of the pool is about 50 million yuan but will be adjusted and expanded based on actual demand.

The second policy is set out in an official document on promoting clusters of venture capital agencies issued by the district government. Eligible venture capital institutions will be rewarded at most 1.1 percent of their paid-in capital, with any single candidate institution being eligible for a maximum of 33 million yuan. The document also grants the venture capital management enterprises a rental subsidy of 150 yuan per square meter per month for up to 36 consecutive months. Moreover, a special award will be offered to venture capital institutions that have operated in Guangzhou based on their business contributions. At least 50 percent of the prize money will be allocated directly into the personal bank accounts of the managerial team or skeleton staff, the document notes.