The following is a readout of a May 2025 press convention that includes a number of Chinese authorities finance officers, who mentioned a just lately issued coverage—additionally translated by CSET—encouraging larger capital market funding for tech firms. The officers describe varied facets of those coverage measures, all designed to overcome the reluctance of Chinese institutional and non-public buyers to put money into promising however dangerous smaller tech firms.
An archived model of the Chinese supply textual content is accessible on-line at: https://perma.cc/3Z7N-BEG8
Expand Financing Support to Science and Technology Enterprises (Authorized Release)
The Decision of the Third Plenum of the twentieth Central Committee put ahead the institution of a science and expertise (S&T) finance system tailored to S&T innovation, and the strengthening of monetary assist for main nationwide S&T duties and small and medium-sized S&T enterprises. On May 22, [2025,] the State Council Information Office held a press convention at which the heads of related ministries launched particulars relating to S&T finance insurance policies.
15 Policy Measures to Accelerate the Establishment of an S&T Finance System
Recently, seven ministries, together with the Ministry of Science and Technology and the People’s Bank of China, collectively issued Certain Policy Measures to Accelerate the Construction of the Science and Technology Finance System and Strongly Support a High Level of Self-Reliance in Science and Technology1 Vice Minister of Science and Technology Qiu Yong (邱勇) defined that the coverage measures deal with seven areas, together with enterprise capital, financial and credit score insurance policies, the capital market, S&T insurance coverage, and bond markets. Some 15 coverage measures are proposed, overlaying each upgrades of current insurance policies and progressive new insurance policies—
Establish a “National Venture Capital Guidance Fund” to information enterprise capital to “invest early, invest in small companies, invest long-term, and invest in hard S&T.”2 A sequence of recent measures is put ahead, centered round streamlining all the enterprise capital life cycle of “fundraising, investment, management, and exit,” proposing to: Expand the scope of the pilot program for fairness investments by monetary asset funding firms3 and assist bond financing by enterprise capital establishments, in order to broaden funding sources; encourage the event of secondary market funds to easy exit channels for enterprise capital; and optimize evaluation and analysis mechanisms for state-owned enterprise capital to make it extra affected person and steadfast.
Use structural financial coverage instruments absolutely and successfully to information monetary establishments in rising credit score assist for S&T enterprises. Further optimize the construction, develop the size, and cut back the rates of interest on relending services for S&T innovation and technological transformation, creating devoted financing channels for S&T enterprises, particularly non-public (民营) small and medium-sized enterprises; and encourage business banks to set up specialised S&T finance establishments with distinctive options and optimize evaluation mechanisms, thereby making mortgage financing sooner and simpler.
To view the remainder of this translation, obtain the pdf under.
- Translator’s word: CSET’s English translation of Certain Policy Measures to Accelerate the Construction of the Science and Technology Finance System and Strongly Support a High Level of Self-Reliance in Science and Technology is accessible on-line at: https://cset.georgetown.edu/publication/china-tech-finance-measures/.
- Translator’s note: “Hard S&T” (硬科技) refers to technologies that require long-term research to come to fruition, have high technical barriers and clear applications, are at the technological cutting edge, and have a transformative effect on the economy and society. Photonic chips, AI, aerospace, biotech, and IT are all examples of hard S&T. “Hard S&T” is more or less synonymous with “key and core technologies” (关键核心技术).
- Translator’s note: In China, a financial asset investment company (AIC; 金融资产投资公司) is defined as a non-bank financial institution that conducts debt/equity swaps and supporting services for companies, just as a bank does. The main shareholder of an AIC is typically a bank.