China Plans Financial Support to Drive Tech and Industrial Innovation

China announced a strategy to enhance financial services for tech-driven businesses, aiming to support integrated progress in technological and industrial innovation.

The strategy, collaboratively released by the National Financial Regulatory Administration, the Ministry of Science and Technology, and the National Development and Reform Commission, details initiatives to enhance financial services such as establishing service mechanisms, providing product offerings, delivering specialized services, and improving risk control capabilities.

The initiative seeks to encourage the creation of a financial service framework, assisting entities like government at various levels, tech companies, financial organizations, venture capital funds, and intermediary service providers in developing a multi-tiered technology financial service ecosystem.

Actions will be taken to enhance services in technology credit and insurance, advance pilot projects related to technology finance policies, strengthen partnerships with entities like venture capital, and facilitate bond financing for technology-driven businesses.

The guidelines highlight the importance of initial funding for tech startups and sustained financial assistance for small and micro businesses, Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies at Renmin University of China, informed the Global Times on Tuesday. Zhou stated that this approach fosters the growth of tech companies by allowing them room for trial and error.

Financial institutions are urged to utilize cutting-edge technologies such as cloud computing, big data, and artificial intelligence to create digital business solutions that improve operational efficiency and risk management abilities.

The plan will strengthen financing guarantee services for tech-oriented businesses by creating a specialized assessment and evaluation system.