At the end of 2020, Beijing took the lead in piloting the transfer of fund shares in China to accelerate the smooth circulation of capital through institutional innovation, exploring a new way to make patient capital serve sci-tech innovation.

Over the past year or so, the fund share transfer pilot has maintained sound development, building up the rudiments of a market ecosystem. Altogether 21 fund share transfers have been completed at the Beijing Equity Trading Center so far, with a total transaction amount of over CNY 3.4 billion; and the size of inventoried projects exceeds CNY 60 billion. Meanwhile, 12 fund share pledges worth over CNY 1.5 billion have been made. The accelerated capital flow is giving constant impetus to Beijing to build an international center for innovation.

The fund share transfer pilot in Beijing has been selected as one of the first ten best practice cases in building the integrated national demonstration zone for opening up the services sector, gaining some initial replicable and scalable outcomes in model and institution innovation. The Fund Share Transfer System backed by the underlying technology of block-chain provides guarantees in infrastructure for the whole process of market-based fund share transfer transactions, and has been included in the pilot of fintech innovation in the capital market planned by the China Securities Regulatory Commission.

(Source: Beijing Daily)