South China's Guangdong Province on Wednesday issued a package of policies to support private companies with less red tape and better access to loans.

Guangdong is known for its booming private sector, boasting the largest number of private firms and the highest tax revenues from such companies in China.

The policies, announced at a press conference by the Guangdong provincial government, aim to lower production and operation costs of private firms and alleviate their financing difficulties.

Specifically, the provincial government promised to shorten the time needed for opening a new business and lower prices of gas and electricity for industry use. It also encouraged banks to offer favorable loans to small- and micro-sized companies.

Moreover, the government said it would broaden market access to private firms in sectors including transportation, water projects and municipal services.