China’s banking regulator is pushing for banks and insurers to provide greater financial support to domestic tech enterprises.
On 3 December the China Banking and Insurance Regulatory Commission (CBIRC) issued the “Guidance Opinions on the Banking Sector and Insurance Sector Supporting the Independent Establishment and Independent Strengthening of High-level Tech” (关于银行业保险业支持高水平科技自立自强的指导意见).
CBIRC said the Opinions seek to “raise the quality of financial services for tech innovation…encourage commercial banks to strive to achieve ongoing growth in the tech enterprise loan balance and the number of loan clients, and continually increase the level of comprehensive financial services.”
CBIRC will encourage insurers to “improve insurance product systems, and form insurance guarantees covering tech enterprise research and development, production and sales.”
The Guidance Opinions also state CBIRC will “actively support tech enterprises in direct financing,” with a focus on tech enterprises who are characterised by high risk and strong uncertainty.
CBIRC will support commercial bank investment subsidiaries, insurance companies and trust companies to contribute capital to venture capital funds and government industry investment funds, to provide equity investment to tech enterprises.
According to the Opinions this will advance “mutual supplementation of direct financing and indirect finance; jointly employing policy-based finance and commercial finance, and employing the proactiveness of tech finance services with full consideration to the advantages and unique features of banks, insurers and non-bank financial institutions.”