GUANGZHOU is to end policies that discriminate against the private sector. According to the New China News Agency, the new policies announced by the city will put the private enterprises virtually on a par with their state sector counterparts. Guangzhou leader Gao Jiren, said the policies were aimed at giving a further boost to the private sector. Under the new policies, private enterprises, including those in the property sector or handling capital goods, will be allowed to trade on the same terms as state and collective enterprises, including the handling of capital goods and real estate business. The private enterprises will be encouraged to enter into joint-ventures or co-operative undertakings with foreign investors, to engage in compensation trade - supplying goods or services instead of cash - and border trade and to run enterprises abroad. If the trade of a private enterprise reaches a certain volume, it may even be granted the same control over imports and exports as some state enterprises. Private enterprises may use housing or other property or securities as collateral for loans or ask other enterprises to act as guarantor. Guangzhou also plans to set up an experimental zone for private enterprises that will enjoy the same preferential policies granted to new technology development zones. Meanwhile, the Ministry of Domestic Trade reported that about half of China's small state-owned shops have been leased to private businessmen. Those who take over the stores have to provide their own capital and annually hand over a percentage of their profits to the state annually.