China’s banking and insurance sectors are set to play a key role in driving the development of financial services tailored to support technological innovation over the next five years, according to a government plan unveiled on Tuesday.
The country aims to enhance the availability of credit loans and medium-to-long-term financing for technology companies, offering flexible pricing and repayment options, as detailed in the plan jointly issued by the National Financial Regulatory Administration, the Ministry of Science and Technology, and the National Development and Reform Commission.
For tech companies that typically face extended cash flow cycles, banks will have the option to extend loan terms, with maximum tenures of up to five years, the plan noted.
The government also plans to integrate technology finance-related metrics into the internal performance evaluation systems of banks and financial institutions, while allowing greater tolerance for non-performing loans within the tech sector where appropriate.
The initiative emphasizes the importance of providing equitable financial services to both private and foreign-invested tech enterprises, as well as research and development centers.
Additionally, the plan aims to expand a pilot program that facilitates equity investments by financial asset management companies in regions with strong economies and a high concentration of tech companies. The government also encourages qualified commercial banks to establish financial asset investment companies to further support the tech sector.
The plan further calls on banking institutions to offer underwriting services for eligible science and technology firms seeking to issue innovation bonds and asset-backed securities.
Related topics
