Guidelines were jointly issued by China’s National Financial Regulatory Administration (NFRA), Ministry of Science and Technology and the National Development and Reform Commission to align financial services with national innovation goals:
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Targeted financial support: Emphasis on early-stage, long-term, and smaller-scale investments in core and advanced technologies, especially for small and micro-sized tech firms.
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Five-year goal: Banks and insurers are expected to develop a financial services framework that supports high-priority and emerging innovation sectors.
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Expanded tools and programs: Measures include increased tech-related credit, enhanced insurance coverage for innovation, venture capital pilot programs, and debt financing options.
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Loan flexibility: Proposals to extend loan terms up to five years for tech firms with longer business cycles, along with more flexible interest rates and repayment structures.
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IP financing ecosystem: Introduction of pilot programs to expand financial services linked to intellectual property, including valuation systems and IP-based lending.
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Insurance and capital markets: Encouragement for insurers to undertake long-term investments, launch private securities funds, and participate in venture capital to support “patient capital” for tech growth.
Asthey US pulls back from the globe, China is stepping up
This article was written by Eamonn Sheridan at www.forexlive.com.