In a significant move to bolster China’s technological self-reliance, seven key ministries including the Ministry of Science and Technology and the People’s Bank of China have jointly issued 15 policy measures aimed at establishing a robust sci-tech finance ecosystem These policies are designed to provide comprehensive financial support throughout the entire lifecycle of technological innovation from R&D to commercialization marking a strategic response to intensifying global technological competition
Targeted Financial Instruments for Breakthrough Innovation
The policy package introduces diversified financial tools to address critical pain points in tech financing A national venture capital guidance fund will be established while venture capital institutions gain access to bond financing channels Monetary policy tools like sci-tech innovation relending will be optimized with banks encouraged to develop long-term evaluation mechanisms for innovation loans This multi-pronged approach ensures sustained capital flow into cutting-edge fields and future industries
Regional Hubs to Pilot Innovative Financing Models
The document identifies key innovation clusters for pilot programs with priority given to Beijing Shanghai and the Greater Bay Area’s international innovation centers Regional hubs including Wuhan Chengdu-Chongqing and Xi’an will spearhead market-based policy experiments in sci-tech finance This geographical focus aims to create replicable models for nationwide implementation while strengthening local innovation ecosystems
Capital Market Reforms to Empower Tech Enterprises
Capital market enhancements form a cornerstone of the new policies Breakthrough tech firms will receive prioritized access to IPO channels while a specialized “Technology Board” will be created in the bond market Insurance mechanisms are being revamped to mitigate innovation risks with proposals for co-insurance models in critical sectors and insurance fund participation in national tech projects
Fiscal Leverages to Stimulate Private Investment
The policy framework activates fiscal tools to crowd-in private capital Loan interest subsidies risk compensation mechanisms and specialized guarantee programs will lower barriers for tech financing Tax incentives for angel investors and venture capital firms will be strictly implemented creating a more attractive environment for early-stage tech investment
Implementation Roadmap for National Tech Ambitions
With the Third Plenum’s directive to build a sci-tech finance system compatible with innovation needs these measures represent a concrete implementation plan The Ministry of Science and Technology will coordinate cross-departmental efforts to ensure policy effectiveness providing the financial foundation for China’s dual goals of technological self-sufficiency and global sci-tech leadership The initiative underscores China’s commitment to systemic financial reforms that can sustain long-term innovation capacity
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