China steps up efforts to increase financial support for sci

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By Chu Daye (Global Times) 09:40, May 23, 2025

As of the end of the first quarter, outstanding bank loans to technology-based companies reached 17.7 trillion yuan, up 20 percent year-on-year, higher than the average loan growth rate, according to an official with the National Financial Regulatory Administration (NFRA).

These updates were announced at a press conference at the State Council Information Office on Thursday amid China's efforts to increase financial support for sci-tech innovation to improve the country's self-reliance and strength in science and technology.

On May 14, seven authorities, including the Ministry of Science and Technology, the PBC and the National Development and Reform Commission, issued a document containing 15 concrete measures to promote financial services to support sci-tech innovation, including those to boost venture investment, credit supply and insurance support.

China will leverage the role of its national venture capital guidance fund, encourage the development of secondary-market private equity funds, and optimize structural monetary policy tools such as re-lending loans for sci-tech innovation, per the May document.

According to the document, the country will take advantage of the capital market in serving sci-tech innovation, and prioritize the public offerings of enterprises that achieve breakthroughs in critical core technologies.

It is expected that these financial support initiatives can truly fulfill the objectives of targeting small-scale ventures, supporting early-stage projects, committing to long-term investments, and funding core technologies, thereby genuinely assisting projects that demand substantial capital input, require prolonged cultivation and lengthy trial-and-error processes, Tian Xuan, associate dean of Tsinghua University's PBC School of Finance, told the Global Times.

The measures announced in May followed a plan unveiled on April 1 to strengthen financial services for technology-based enterprises, as part of the country's efforts to promote integrated advancements in technological and industrial innovation.

The plan aims to promote the establishment of a financial services mechanism, supporting parties such as governments at all levels, technology firms, financial institutions, venture capital funds, and third-party intermediary service agencies in building a multi-level technology financial services ecosystem.

(Web editor: Tian Yi, Liang Jun)