Source: Global Times    Published: 2025-04-01

By Global Times

China on Tuesday released new guidelines encouraging financial services for technology companies, in a move to accelerate technological innovations and develop new quality productive forces. 
 
The guidelines, jointly released by the National Financial Regulatory Administration (NFRA), the Ministry of Science and Technology and the National Development and Reform Commission, outline seven areas and 20 measures to strengthen financial and tech services to boost professional competency and risk-control capability, according to a statement from the NFRA. 

The guidelines aim to align regulatory, technological and development policies, seeking to remove bottlenecks in the flow of capital to technology firms.

Authorities said that the move will increase the supply of financial resources needed for tech innovations. Banks and insurers are urged to invest earlier, invest in smaller amounts and for longer terms, and invest in core technologies, channeling more funds into advanced technology development.

An expert said that the guidelines have laid out a detailed plan for the financial sector to promote technological development and help bring tech enterprises' research outcomes to fruition. It continues China's previous financial reform initiatives aimed at advancing technological progress, while also providing more specific updates.

The guidelines emphasize early-stage investment in technology enterprises and long-term financial support for small and micro-sized enterprises, Zhou Rong, a senior researcher at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Tuesday. This approach fosters the growth of tech companies by allowing them room for trial and error, Zhou said.

The guidance outlines a five-year goal for banks and insurers to build a financial services structure aligned with high-priority and emerging areas of innovation. The aim is to deliver more precise, high-quality financial support while speeding up the development of the technology finance sector.
 
The government agencies said that the measures will push financial institutions to expand tech-related credit issuance, strengthen insurance coverage for innovation, and launch pilot programs to promote venture capital cooperation. The guidelines also back debt financing for tech firms to channel more resources into innovation. 

The document focuses on leveraging policy synergy and unified coordination, which will help introduce more targeted measures and promote the healthy circulation of funds, Zhou said.

The document proposes increasing credit lending and medium- to long-term loans for technology companies, as well as offering flexible loan interest rates and interest repayments. For loans tied to longer business cycles, banks may extend terms up to five years.
 
The document highlights the role of insurers, including furthering pilot reforms for long-term investment by insurance funds, supporting insurance companies in initiating private securities funds for stock market investments, and promoting greater venture capital participation to shore up patient capital.
 
The guidelines also prioritize intellectual property (IP), proposing a comprehensive pilot program to build an IP financing ecosystem, expand IP-related financial services and explore internal valuation trials.
 
The guidelines are in line with China's latest developments in the financial sector. On March 5, the State Council issued a document calling for improving financial services for tech innovation, employing equity, debt, insurance and other means in a coordinated manner to provide comprehensive, full-life-cycle financial services to technology companies. The guidelines emphasize strengthening financial support for major national science and technology initiatives and for technology-based small and medium-sized enterprises.