Shenzhen, a major city known for its technological innovation in China, is set to expand the scale of bond issuance by technology companies as part of its efforts to support the growth of the sector. Five departments, including the Shenzhen Local Financial Supervision and Administration Bureau and the Shenzhen Science and Technology Innovation Committee, jointly issued the “Shenzhen Implementation Opinions on Financial Support for Technological Innovation” on October 8.
The “Implementation Opinions” outline a comprehensive plan that encompasses various aspects of financial support for technological innovation and development. The plan is divided into six parts, focusing on improving the technology financial service system, promoting the innovative development of technology finance, guiding venture capital to support technology, strengthening the hub function of the capital market, strengthening platform think tank service support, and other explanatory matters. The document will officially take effect on November 1 and will remain valid for the next five years.
Among the key points highlighted in the plan is the expansion of the bond issuance scale for technology-based enterprises. Shenzhen aims to innovate a new model for the bond market to better serve technology companies. This includes optimizing business processes such as acceptance review, information disclosure, risk disclosure, bookkeeping, and duration management. The city also plans to explore an intermediary selection and recruitment mechanism where “investors choose, issuers pay”.
Furthermore, the plan aims to support qualified technology-based companies to issue science and technology innovation notes and technology innovation corporate bonds, with the goal of steadily promoting these companies to expand their financing scale through the bond market. Additionally, the plan includes support for qualified technology-based small and medium-sized enterprises to issue high-yield bonds, creating the country’s first high-yield bond market pilot. The objective is to utilize the bond market’s financial service function more effectively for technology-based companies.
To further enhance financial support for technological innovation, the plan emphasizes the role of technological insurance protection. It encourages insurance companies to promote technology insurance, such as R&D expense insurance, and develop new insurance products like patent insurance. The plan also suggests encouraging qualified insurance companies to develop export credit insurance for high-tech enterprises.
In addition, the plan calls for strengthening financial services in key areas of technological innovation. This includes exploring long-term mechanisms for financial support of basic research and increasing support for the research and development and application demonstration of new technologies and new products. The plan also aims to expand the coverage of financial services for technology-based enterprises, help technology-based talents innovate and start businesses, and promote the upgrading and upgrading of technology-based small and micro enterprises.
Overall, the “Shenzhen Implementation Opinions on Financial Support for Technological Innovation” demonstrates the city’s commitment to nurturing the technology sector and facilitating its financing. By expanding the scale of bond issuance, improving the technology financial service system, and providing insurance protection and financial services in key areas, Shenzhen aims to foster a favorable environment for technological innovation and support the growth of technology-based companies.