I. Key Features

The Several Measures on Providing Whole-Chain Financial Support for Sci-Tech Innovation Enterprises (hereinafter referred to as the Measures) is aimed at developing Beijing into an International Center for Science and Technology Innovation. Its three key features are as follows.

1. Encouraging financial institutions to innovate products and services

Focusing on the major difficulties of sci-tech innovation enterprises in financing, the Measures encourages and guides financial institutions to provide whole-chain financial services covering venture capital, bank credit, and financing for public listings for sci-tech innovation enterprises, thereby channeling innovative resources to allocate them effectively based on the market demand.

2. Strengthening government guidance and support for sci-tech innovation enterprises

The Measures offers a comprehensive policy package designed for the practical needs of the relevant enterprises, aimed at improving the coordination mechanism between governments, banks, and enterprises, enhancing the guiding role of government investment funds, improving the services of government-backed financing guarantee institutions, and supporting enterprises in obtaining intellectual property pledge loans and technology insurance and accessing other necessary services. These efforts are expected to contribute to the development of such enterprises through institutional guidance and support.

3. Supporting breakthroughs in enterprises' R&D and innovation capacities

Focusing on financial support measures essential to the R&D and innovation activities of the relevant enterprises, the Measures aims to boost the enterprises' overall strengths through breakthroughs in innovation, encouraging social capital to invest in smaller enterprises in their early phases. It also calls for establishing service mechanisms for invested companies, including those receiving investment through private equity and those through venture capital, to strengthen financial backing for tackling key technological challenges, eventually enhancing innovation capacities and core competitiveness of the relevant enterprises.

II. Main Content

The Measures includes seven major areas with 28 specific actions, as outlined below:

1. Establishing a product innovation mechanism to create an effect that "drives enhancement"

Some of the specific actions include: increasing credit supply for sci-tech innovation enterprises, strengthening innovation in equity-debt linkage models, making full use of monetary policy tools, innovating asset management products, improving the technology insurance system, exploring securitizing intellectual properties, and encouraging sci-tech innovation enterprises to raise funds through bond markets.

2. Establishing a support mechanism for listing to leverage the "capital engine" effect

Some of the specific actions include: enhancing cultivation for the listing of enterprises, leveraging the demonstrative and leading role of the Beijing Stock Exchange, and strengthening listing-related subsidy support.

3. Establishing a service mechanism for invested enterprises to exert the "leverage effect"

Some of the specific actions include: making greater efforts in developing angel investment and venture capital, improving services for invested enterprises, providing long-term capital risk subsidies with favorable investment results, and enhancing the guiding role of government investment funds.

4. Establishing a performance evaluation and incentive mechanism to achieve "targeted guidance"

Some of the specific actions include: optimizing the business environment for sci-tech credit, supporting enterprises in obtaining intellectual property pledge loans and technology insurance, and enhancing the service capability of government-backed financing guarantee institutions.

5. Establishing a risk compensation mechanism to realize "collaborative risk-sharing"

Some of the specific actions include: providing risk compensation for intellectual property pledge loans and improving the efficiency of compensation fund utilization.

6. Establishing a coordination and communication mechanism to ensure "institutional safeguards"

Some of the specific actions include: strengthening support services for sci-tech talents, improving the government-bank-enterprise coordination mechanism in the sci-tech finance sector, and building cross-industry, cross-sector, and cross-level information cooperation networks.

7. Establish a pilot-first mechanism to unleash the "model effect"

Some of the specific actions include: supporting the establishment of a sci-tech finance service center in Haidian District, developing Haidian into a national venture capital hub of China, further enhancing the cross-border/boundary financing support for Zhongguancun's sci-tech innovation enterprises, and further increasing the support for sci-tech loan products and listing subsidies.