The People’s Bank of China and 10 other authorities have jointly issued guidance to expand financing for technology innovation in the Beijing, Tianjin and Hebei region, the Yangtze River Delta and the Guangdong, Hong Kong and Macao Greater Bay Area. By 2030, the guidance targets a substantially higher share of direct financing and broadly integrated regional financial services covering research, commercialization and industrial development. The measures combine expanded credit and investment support, regional coordination and easier cross-border financing. A pilot will extend eligibility for technology innovation and technological transformation relending support to private small and medium enterprises with relatively high research and development spending. The guidance also promotes patient capital through venture capital funds, supports merger and acquisition funds, and encourages guarantees and credit protection tools for technology bond financing. Regional measures differentiate between support for original research and major scientific infrastructure around Beijing, financing across industrial clusters in the Yangtze River Delta, and closer financial cooperation with Hong Kong and Macao in the Greater Bay Area. Shared technology and credit information, mutual recognition of innovation scores and coordinated financial services are intended to support businesses and projects operating across regional boundaries. For eligible technology companies, the guidance supports access to external borrowing under pilot arrangements with appropriately increased limits, as well as cross-border cash pooling. It also calls for easier settlement of technology services trade and transfers of research funding, alongside further capital market connectivity. Provincial and municipal authorities are to develop regional implementation rules and work toward common technology finance standards. Financial institutions must retain independent lending decisions and responsibility for their risks, strengthen credit controls and monitor the use of funds. Coordinated risk assessment and information sharing are required to guard against indiscriminate investment and duplicative development.
People’s Bank of China issues joint guidance to expand technology financing across three innovation hubs by 2030
The People’s Bank of China and 10 other authorities issued guidance to expand technology financing across the Beijing, Tianjin and Hebei region, the Yangtze River Delta and the Guangdong, Hong Kong and Macao Greater Bay Area. It targets a substantially higher share of direct financing and broadly integrated regional financial services by 2030 through relending support, patient capital, bond financing and easier cross-border funding. Financial institutions must strengthen credit controls and retain responsibility for their risks.