Multi-departmental policies are being implemented in China to attract financial resources and support technological innovation, according to an article published by the “Economic Information Daily”. The balance of medium and long-term loans for high-tech manufacturing reached 2.5 trillion yuan by the end of June 2023, marking a year-on-year increase of 41.5%. Additionally, the state council held a briefing on the policy of “Financial Support for Technological Innovation, Strengthening and Optimizing the Real Economy”, where it was revealed that relevant departments are actively guiding financial resources towards scientific and technological innovation.
China’s financial system has been increasing its support for technological innovation, with the establishment of a multi-departmental innovation mechanism to solve financing issues and promote the development of a multi-level financial support system for technological innovation. Policies and systems will continue to be improved to encourage more investment in the real economy and innovation.
The article highlights the growth in financial support for technological innovation in terms of loans and direct financing. The balance of medium and long-term loans for high-tech manufacturing industries increased by 41.5% year-on-year, while loans for technology-based small and medium-sized enterprises rose by 25.1% year-on-year. The balance of sci-tech bills and sci-tech corporate bonds reached around 450 billion yuan, and over 1,000 specialized small and medium-sized enterprises have been listed on A-shares.
According to Wu Zhaohui, vice minister of the Ministry of Science and Technology, the strength, breadth, and precision of financial support for technological innovation have been continuously improved. There are currently 542 companies listed on the Science and Technology Innovation Board, with a total market value of 6.72 trillion yuan. Furthermore, the Beijing Stock Exchange has 204 listed companies with a total market value exceeding 266.8 billion yuan.
Financial institutions have also introduced new mechanisms to serve science and technology innovation enterprises. For example, the Beijing Branch of China Construction Bank has launched stock-debt linkage services for technology companies, providing patient capital and exploring a new service model for commercial and investment banks.
The Ministry of Science and Technology has implemented the “Enterprise Innovation Credit System” to address the financing challenges faced by technology-based enterprises. This system evaluates the innovation ability and development potential of enterprises based on indicators such as R&D investment, technology contracts, and venture capital. Local governments have also developed tailored plans to provide financial support for scientific and technological innovation, such as the Shandong Science and Technology Finance Credit Enhancement Service Platform.
To further strengthen support for scientific and technological innovation, various departments have introduced policies such as the “Action Plan for Intensifying Support for the Financing of Technology-based Enterprises” and the expansion of direct financing channels for specialized, specialized, and new enterprises. Equity investment and bond market expansion are also being promoted to meet the financing needs of start-up technology companies.
The article concludes that China’s financial system is increasing its support for technological innovation through multi-departmental policies and mechanisms. The aim is to promote the development of a multi-level financial support system and attract more investment in the real economy and innovation.