People's Bank of China and other regulators outline next steps for tech finance including a bond market technology board

The People's Bank of China, the Ministry of Science and Technology, the National Financial Regulatory Administration and the China Securities Regulatory Commission convened a working meeting on technology finance, setting out priorities to implement national measures aimed at building a tech-finance framework that better supports major technology missions and technology-focused small and medium-sized enterprises. Priorities include accelerating implementation of the relending policy for technology innovation and technical transformation, and using incentives to expand banks’ first-time lending to technology firms and equipment renewal lending. The agenda also covers strengthening bank and insurance support for innovation, advancing pilots for financial asset investment companies’ equity investment and for merger and acquisition loans to technology firms, building a bond market “technology board”, and applying a risk-sharing tool for technology innovation bonds to support bond issuance by equity investment institutions. The meeting called for improvements to the broader enabling ecosystem, including wider use of an “innovation points” scoring mechanism, stronger cross-agency coordination, and more effective supporting policies for financing matchmaking, risk-sharing and information sharing. Financial institutions were asked to adjust governance, talent and risk management for the needs of technology firms, refine internal mechanisms such as due diligence exemption and performance assessment, and expand products including investment in and underwriting of technology innovation bonds, alongside pushing pilots in major innovation hubs including Beijing, Shanghai and the Guangdong-Hong Kong-Macao Greater Bay Area.