Guiyang Finds Constructive Ways to Transform Old Communities

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GUIYANG, China, Feb. 26, 2018 /PRNewswire/ -- Bai Changyun, a resident of Xibei community in Huaxi District in the capital city of southwestern China's Guizhou Province, received a big "red envelope" of 16,500 yuan ahead of the Chinese New Year. This is the dividend for his stakes in the community.

"I have been a shareholder for ten years and the dividend rose from 500 to 3,300 yuan per stake. What an investment!" Bai said.

Bai's village's land was collected by the government ten years ago to give room for projects such as expansion of Guizhou University and rebuilding shanty areas. To address villagers' concerns, the grassroots government decided to turn their collective assets into equities which are shared by 1,355 villagers. The number of shares will never change to ensure villagers' due interests.

An upgraded version of the village's practice was introduced across Guiyang in 2017, which turn collective assets into equities, cash into investment capital and residents into shareholders. For residents related with rebuilding shanty areas, they could choose to have a stake in new business entities to enjoy possible dividends.

These residents can enjoy legitimate income from their shares. The government encourages relocated residents to invest part or all of their houses and land after assets appraisal. For those who prefer monetary compensation, they can invest in business entities. Relocated residents could become shareholders by offering their assets, money or intellectual property rights. Meanwhile, they can withdraw their shares according to specific rules.

The process is handled by a self-initiated local residents economic cooperation organization, which will collect local resources, assets and capital to promote stakeholdership among social capital, business entities and residents by different approaches.

The reform is expected to generate considerable benefit as Guiyang plans to rebuild 22.31 million square meters of shanty areas from 2018 to 2020, involving 155,400 households.