The People’s Bank of China and the Ministry of Science and Technology make arrangements for providing scientific and technological financial services in key areas
On October 18, according to the Ministry of Science and Technology, a collaborative effort has been initiated to enhance technology finance services in key regions across China. This comes in response to the recent Third Plenary Session of the 20th Central Committee of the Communist Party and a joint proposal from the People’s Bank of China, the Ministry of Science and Technology, and five other departments focused on advancing a comprehensive strategy for technology finance.
A newly issued directive, titled “Notice on Enhancing Technology Finance Services in Key Regions,” aims to guide 13 essential areas, including Beijing, Shanghai, Tianjin, Jiangsu, Zhejiang, Anhui, Shandong, Hubei, Guangdong, Chongqing, Sichuan, Shaanxi, and Shenzhen. These regions are being called upon to strengthen their technology finance capabilities.
In recent years, significant progress has been made in technology finance across various innovation hubs, including the Beijing and Shanghai technology innovation centers, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Chengdu-Chongqing region, as well as in Jinan, Shandong, and the five cities in the Yangtze River Delta. These efforts have led to the accumulation of innovative practices and models that emphasize financial support for technological advancements, promoting self-reliance in high-level science and technology.
The new notice outlines several key requirements to expedite the establishment of a technology finance system that meets innovation needs. Firstly, there is a call to integrate diverse policy resources to support technology finance development and to refine mechanisms for evaluating the innovation capacity of enterprises, matching investment with financing, and sharing risks.
Secondly, the notice stresses the importance of enhancing financial support levels, utilizing structural monetary policy tools like technology innovation and technical transformation relending, and expanding loan offerings to technology-driven enterprises within the jurisdictions. It also recommends that the performance evaluation of technology finance services consider the underwriting and investment in technology-based corporate bonds, aiming to increase the volume of technology innovation notes issued.
Additionally, it encourages bolstering financial support for technological enterprises, key projects, and critical manufacturing industrial chains within the regions, as well as exploring new technology finance models that focus on loans, direct investments, acquisition financing, and technology insurance.
The notice advocates for building collaboration platforms among financial institutions, technology intermediaries, and academic institutions to enhance information sharing and service synergies, ultimately providing diversified and continuous financial services to tech-oriented companies. It also proposes the establishment of a data-sharing platform for technology finance, encouraging credit institutions to innovate in credit products specific to the technology finance sector, thus enhancing the sharing and utilization of public information.
Lastly, the notice calls for a system to evaluate the effectiveness of regional technology finance services, ensuring that positive outcomes are recognized and utilized as incentives.
Going forward, the Ministry of Science and Technology and the People’s Bank of China plan to strengthen policy coordination and information exchange, effectively guiding the branches of the People’s Bank and local technology departments in these 13 key regions to optimize their technology finance services. This initiative aims to cultivate an ecosystem that supports technological innovation and achieve high-quality technology finance services, ultimately contributing to China’s ambition of becoming a leader in technology and achieving a self-reliant technological landscape.