Boom of new firms is not what it seems

Economy | Ed Zhang

Of China's half-year economic reports, one is less noticed, the one about the number of newly registered companies, which was issued by the State Administration of Industry and Commerce on July 8.

Some 4 million new companies have sprung up since the beginning of March, when the old capital requirement system was abolished and replaced by a more liberal registration system in which a citizen can practically set up a company with only 1 yuan (16 US cents) of capital.