On February 29, 2016, Guangdong Provincial Government issued the Overall Plan of the Supply Side Structural Reform from 2016 to 2018 (the “Overall Plan”). According to the Overall Plan, Guangdong province will reduce the upper limit of the contribution rate of housing funds from 20% to 12%, and enterprises may choose the contribution rate from 5% to 12% based on their business status. Certain enterprises that experience difficulties in business operations may even apply to delay the payment of contribution or for a further reduction of the said contribution rate. The Overall Plan also requests that the contribution rate of unemployment insurance shall reduce from 1.5% to 0.8%. The Overall Plan intends to mitigate the burden on enterprises and better safeguard their operating environment in Guangdong province.