The Chinese government has announced its intention to strengthen financial support for sci-tech innovation, with a focus on improving the country’s self-reliance and strength in science and technology. The move aims to promote financial services for sci-tech innovation, including venture investment, credit supply, and insurance support.
Key Measures to Promote Financial Services for Sci-Tech Innovation
- Boost venture investment: China will scale up financial support for enterprises that undertake major national sci-tech tasks, and for sci-tech-oriented small and medium-sized enterprises.
- Improve credit supply: The country will optimize structural monetary policy tools such as re-lending loans for sci-tech innovation.
- Enhance insurance support: China will leverage the role of its national venture capital guidance fund to encourage the development of secondary-market private equity funds, and to optimize structural monetary policy tools such as re-lending loans for sci-tech innovation.
Enhancing Fiscal Policies
China will use fiscal tools such as loan interest subsidies and risk compensation to support enterprises in sci-tech innovation, and will effectively implement related tax policies for angel investment and venture capital.
The country will prioritize the public offerings of enterprises that achieve breakthroughs in critical core technologies, and will take advantage of the capital market to serve sci-tech innovation.
Optimizing Structural Monetary Policy Tools
China will optimize its monetary policy tools to support sci-tech innovation, including re-lending loans for enterprises that undertake major national sci-tech tasks, and for sci-tech-oriented small and medium-sized enterprises.
The country will also encourage the development of secondary-market private equity funds and leverage the role of its national venture capital guidance fund to optimize its monetary policy tools.
Use of Loan Interest Subsidies and Risk Compensation
- Loan interest subsidies: China will use loan interest subsidies to support enterprises in sci-tech innovation.
- Risk compensation: The country will use risk compensation to support enterprises in sci-tech innovation.
Prioritizing Public Offerings
China will prioritize the public offerings of enterprises that achieve breakthroughs in critical core technologies, and will take advantage of the capital market to serve sci-tech innovation.
The country will focus on enterprises that undertake major national sci-tech tasks, and for sci-tech-oriented small and medium-sized enterprises.
Example: China’s National Venture Capital Guidance Fund
For example, China’s national venture capital guidance fund has been instrumental in supporting sci-tech innovation.
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