On October 16, the People’s Bank of China announced that it has jointly issued a notice with the Ministry of Science and Technology aimed at enhancing financial services for key regions focusing on technology innovation. This initiative targets districts like Beijing, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, urging an increase in the strength and level of financial support. The goal is to effectively utilize structural monetary policy tools, such as re-loans for technological innovation and upgrades, to expand lending to tech-driven enterprises within these areas.

In the notice, there are several specific requirements outlined to accelerate the development of a financial system that supports technology innovation. The document emphasizes the need to integrate various policy resources to bolster the development of tech finance. This includes refining mechanisms for assessing the innovation attributes of enterprises, facilitating investment and financing connections, and sharing risks. The performance of underwriters and investors in relation to bonds issued by tech companies will also be incorporated into evaluations of financial services in this sector, with the aim of increasing the scale of innovative financing instruments.

Additionally, the notice stresses the importance of enhancing financial support for technology companies, key tech projects, and significant industrial chains within the manufacturing sector. It encourages exploring new models of tech finance, focusing on critical areas such as loans combined with direct external investment, acquisition loans, and technology insurance, to reduce bottlenecks and improve service efficacy.

Moreover, the initiative calls for the establishment of a collaborative platform for various financial institutions, technology intermediaries, and educational institutions to facilitate communication and enhance information sharing. This platform aims to provide diversified financial services that support tech companies in a relay-style approach. The notice also proposes creating a data-sharing platform for tech finance, urging credit agencies to innovate in developing value-added products for the tech finance sector, and enhancing the use of information technology to improve public information sharing in this field. Finally, it emphasizes the need to establish a robust assessment mechanism for regional tech finance services, ensuring that evaluation results are utilized effectively, thereby creating positive incentives.