The start-up equity capital did not come directly from the government. As was common among the large entrepreneurial businesses in the 1980s, financing by the government took the form of a loan. The Rongqi township provided Mr. Wang with a 90,000-yuan technical assistance loan and arranged for a credit line of 4 million yuan for his firm. In return, the township took over nominal control of the firm and assigned an official, Pan Ning, to be the general manager. The loan was quickly repaid to the township, but the firm remained registered as a collective TVE.
