China Introduces New Measures to Boost Sci-Tech Bond Issuance
Chinese authorities have unveiled a series of measures to promote the issuance of science and technology (sci-tech) innovation bonds, aiming to provide tech enterprises with better access to funding.
On Wednesday, the People’s Bank of China (PBOC) and the China Securities Regulatory Commission announced initiatives designed to diversify sci-tech bond products and enhance supporting mechanisms. This move is expected to strengthen the financial backing for tech companies and stimulate innovation in the sector.
Under the new measures, commercial banks, securities firms, and financial asset investment companies will be permitted to issue sci-tech innovation bonds, widening the pool of eligible issuers. The initiatives also focus on improving bond issuance management, streamlining information disclosure processes, and optimizing the credit rating system.
Experts believe these steps will bolster technology enterprises by simplifying their access to crucial funding. By enhancing the financial infrastructure, China is reaffirming its commitment to becoming a global technology powerhouse.
In March, China announced plans to launch a “sci-tech board” in its bond market, encouraging financial institutions, tech firms, and private equity investment institutions to issue sci-tech innovation bonds. Preliminary figures from the PBOC indicate that nearly 100 market entities are preparing to issue more than 300 billion yuan (approximately $41.7 billion) worth of sci-tech innovation bonds, with more participants expected to join in the future.
These efforts reflect China’s broader strategy to support sci-tech enterprises and drive technological advancement, positioning the nation at the forefront of global innovation.
