A tech financing drive launched by the Shanghai municipal government several years ago is already bearing fruit for local industry according to new data from state-owned media.
In August 2015 the Shanghai banking regulator launched the “Guidance Opinions Concerning the Shanghai Banking Sector Raising the Level of Professional Operation and Risk Management in Further Supporting Scientific and Technological Innovation” (关于上海银行业提高专业化经营和风险管理水平进一步支持科技创新的指导意见), with the goal of guiding the Shanghai banking sector in the creation of a “pluralised tech financing services platform.”
Economic Daily reports that a raft of data points to the initial success of Shanghai’s recent tech financing policy drive.
As of the end of the third quarter of 2018 the balance of loans to tech companies within the Shanghai area was 242.5 billion yuan, for an increase of 35.4 billion yuan, or 17%, compared to the start of the year.
Shanghai was host to 5811 tech enterprise borrowers, for an increase of 576, or 11%, compared to the start of 2018.
Shanghai has also seen the establishment of 7 “science and technology” branch banks, 1 tech finance specialist organisation and 91 specialist tech branches as of the end of the third quarter last year, that collective employ over 1000 staff.
Loans to tech enterprises made by the 7 science and technology bank branches accounted for 43.35% of their total enterprise lending, while 96.89% of tech enterprise loans were made to small and medium-sized businesses.
