China has introduced a new set of comprehensive guidelines aimed at reinforcing financial backing for the nation’s quest for high-level scientific and technological self-reliance. The initiative, which was announced on Wednesday by the General Office of the State Council, seeks to transform the country into a global sci-tech powerhouse.
The guidelines, which cover a broad spectrum of financial sectors including sci-tech finance, green finance, digital finance, and inclusive finance, outline several key measures to optimize support for technology-driven innovation. A major focus is on integrating financial tools like equity investments and insurance products to provide multi-faceted assistance to tech firms across various growth stages.
In an effort to foster innovation, the guidelines prioritize funding for major national research projects while also targeting small and medium-sized technology enterprises (SMEs). The plan emphasizes the importance of leveraging China’s multi-tiered capital market as a critical hub to fuel advancements in science and technology, with a particular focus on early-stage investment in niche, high-tech sectors.
Furthermore, the guidelines advocate for the development of specialized financing methods, including equity investment and patient capital, to improve the financial environment for SMEs that specialize in cutting-edge technologies. This includes dedicated bonds and enhanced mechanisms for equity financing, which will provide additional resources for tech companies focused on breakthroughs in key core technologies.
In addition to sci-tech finance, the guidelines lay out goals for five key areas—sci-tech finance, green finance, inclusive finance, old-age finance, and digital finance—aiming for notable progress by 2027. These efforts are designed to align with the country’s ambition for high-level self-reliance and technological advancement, ensuring a robust financing system to meet future demands.
Zhao Xijun, co-president of the China Capital Market Research Institute at Renmin University, told the Global Times that the issuance of this comprehensive guideline provides a structured roadmap for the next three years. Zhao highlighted that the plan not only ensures financing for technological enterprises but also builds a stable and long-term financial infrastructure that will protect and nurture innovation in the long run.
Zhao also underscored China’s existing advantages in supporting domestic innovation, noting the strong foundation of capital support systems already in place. He pointed to various measures and platforms that have already been developed to back technological progress.
As part of the broader effort, the National Financial Regulatory Administration (NFRA) announced plans to expand its equity investment pilot program. The program includes measures to help qualified commercial banks establish financial asset investment companies, aiming to increase the flow of funds into the innovation sector.
Xi Junyang, a professor at the Shanghai University of Finance and Economics, commented that the expansion of the pilot program is expected to significantly enhance financing availability for private enterprises, particularly those engaged in sci-tech innovation. He believes that such measures will not only improve market confidence but also provide the necessary momentum for the continued growth of China’s private economy and technological capabilities.
Looking ahead, Zhao emphasized that the capital market must continue to focus on supporting early-stage, high-risk projects, which are crucial to the long-term development of the country’s technological landscape. As the new guidelines take effect, China is poised to further solidify its position as a global leader in scientific and technological innovation.
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