On October 19, the People's Bank of China and several other government departments issued the Guiding Opinions on Financial Support for Development of International Centers for Science and Technology Innovation in Beijing (Beijing-Tianjin-Hebei), Shanghai (Yangtze River Delta), and Guangdong-Hong Kong-Macao Greater Bay Area, calling for the basic completion of an integrated sci-tech financial service system.

On October 20, financial, sci-tech, and other relevant authorities in Beijing, Tianjin, and Hebei released the Implementation Plan for Financial Support for Development of Beijing (Beijing-Tianjin-Hebei) International Center for Science and Technology Innovation. Focusing on development of the center's core functions, regional innovation synergy, and industrial collaboration, the plan aims to establish a multi-tiered, multi-channel financial support system for science and technology.

Beijing-Tianjin-Hebei Region to Expand Full-Chain Financial Support

The plan focuses on strengthening three core functions. To reinforce the region's role as a powerhouse of sci-tech innovation, the three areas will seek support from ultra-long-term special treasury bonds, national-level funds, etc., while making effective use of structural monetary policy tools. To lead in high-end industries, they will boost patient-capital support for world-class advanced industrial clusters and expand medium- and long-term funding sources, including insurance funds, asset investment companies (AICs), and corporate venture capital (CVC). To attract and pool talent, they will optimize financial services tailored for professionals and strengthen full-chain financial provisions across investment, lending, insurance, and foreign exchange.

Focusing on innovation synergy and industrial collaboration, the three areas will build an inter-provincial coordinated financial service system. To promote high-level opening-up in the sci-tech finance sector, priority will be given to supporting sci-tech innovation through Qualified Foreign Limited Partner (QFLP) pilot programs, cross-border/boundary financing facilitation, and the cash-pooling program that integrates domestic and foreign currency management. The three areas will also pioneer regional sci-tech financial reforms and innovation, undertake national pilot programs in the fields of sci-tech finance and digital finance, and establish a sci-tech insurance center and the Xiong'an FinTech Center.

Clearing Bottlenecks in Sci-Tech Finance

Targeting the bottlenecks and pain points in sci-tech finance, the plan outlines a package of support measures across equity, credit, bonds, insurance, and foreign exchange.

For example, to address financing hurdles during the commercialization of sci-tech achievements, the plan promotes credit products such as "Sci-Tech R&D Loans" and "Sci-Tech Commercialization Loans". It aims to move away from traditional underwriting models by placing greater emphasis on talent, technology, and future potential rather than strictly demanding financial indicators and collateral, thereby allowing entrepreneurs to pursue their dreams with fewer burdens. To improve foreign exchange services for foreign professionals and overseas returnees, the plan supports overseas talent in purchasing and remitting foreign exchange through their employers. It also advocates inter-provincial administrative reciprocity across the Beijing-Tianjin-Hebei region under the principle of "recognized in one location, actionable regionwide".

(Source: Beijing Daily)