The municipal government of Zhengzhou, the capital of China’s Henan Province, has proposed a new set of policies that will greatly benefit China Metaverse companies.
These policy proposals were issued on Wednesday, aiming to help the province's metaverse-crypto companies. With these new policies, the municipal government aims to set up a 10 billion yuan (US$1.42 billion) fund dedicated to China Metaverse companies.
According to a new report, it shows that the companies that are entitled to this fund are only those operating within the jurisdiction of this province. It will also include a couple of funding promises that will help attract metaverse crypto companies staying in other provinces of China. In other words, the municipal government of Zhengzhou is trying to create a city that will be infested with many well-funded metaverse businesses.
According to a new government report, any metaverse company that moves to the city would be entitled to up to 200 million yuan (US$28.34 million) investment capital. Apart from the funding these companies will receive, they will also be eligible for some subsidies such as rent.
"In order to thoroughly implement the country's "Digital Economy Development Outline", "The 14th Five-Year Plan" Digital Economy Development Plan, fully implement the "Henan Province Metaverse Industry Development Action Plan (2022-2025)", and accelerate the construction of Zhengzhou's characteristic Metaverse industrial ecosystem , to seize the commanding heights of future industries and create a "China Yuangu", the Municipal Development and Reform Commission researched and formulated the "Implementation Plan for the Development of Zhengzhou Yuanverse Industry (Draft for Comment)" and "Several Policies for the Development of Zhengzhou Yuanverse Industry (Draft for Comment)," the report said.
Also, metaverse companies that are niched to developing use cases within the sector will be entitled to receive up to 5 million yuan (US$710,000). Before these companies receive these funds, they must be headquartered within the city and have every project certified as workable by the municipal government.
According to the municipal government, their major focus would be for companies that research metaverse-related technologies and also for companies fostering the adoption of metaverse technologies for real-world industries.
More Funding from The municipal government of Zhengzhou
The municipal government of Zhengzhou noted that they still have more funds appropriated to develop the metaverse in the city. Besides the 10 billion yuan metaverse industrial fund, they also have more funds slated for the program, depending on its success.
The government said that if the program they are trying to establish is successful, they will issue a further 50 billion yuan (US$7.08 billion) in funding to support metaverse companies. Another condition for these companies is that they must be listed on China’s primary stock exchanges to qualify for the cash rewards.
For implementing these proposed policies, the government says they don't have a specific date set aside for the program. However, they noted that the implementation of these policies is closer. According to projections by the government, they expect that the metaverse companies in the city will reach a whopping 200 billion yuan (US$28.34 billion) revenue by the end of 2025.