China has rolled out a series of new policies aimed at supercharging its tech innovation sector by channeling more capital into science and technology. Announced on Wednesday by the Ministry of Science and Technology along with six other top government agencies, the measures are designed to strengthen the integration of technology and finance, helping the nation build greater self-reliance in science and innovation.
The policy package seeks to direct long-term and patient capital into strategic tech sectors. This move is set to provide stronger financial backing for national laboratories, leading tech companies, and high-potential startups engaged in major scientific missions.
One of the key aspects of the new policies is the plan to boost overseas investment in domestic tech enterprises. By easing rules around equity and venture capital access, China aims to attract more global investors into its burgeoning tech scene. Pilot programs like the Qualified Foreign Limited Partner (QFLP) scheme and cross-border financing channels will be expanded, offering more avenues for investment. Additionally, support will be extended to tech firms seeking overseas listings, in accordance with regulations.
To deepen capital market support for innovation-driven companies, China plans to optimize its initial public offering (IPO) mechanisms. The focus will be on prioritizing financing for firms that achieve breakthroughs in core technologies, ensuring that cutting-edge innovators have the resources they need to grow.
A new national entrepreneurship investment guidance fund will also be launched, targeting the nurturing of emerging and future industries. This fund aims to accelerate the commercialization of major scientific discoveries and develop what officials refer to as “new quality productive forces.”
In an effort to improve access to credit for tech-focused firms, financial regulators will establish a dedicated mechanism within the banking system. Commercial banks are encouraged to set up specialized branches for tech finance, particularly in regions with concentrated innovation activities.
These new policies represent China’s latest initiative to align financial resources with its national innovation goals. As global competition in advanced technologies intensifies, China is positioning itself to lead the way by fostering a robust environment for tech innovation and investment.
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China rolls out measures to channel capital into sci-tech innovation
cgtn.com
