The official media outlet for China’s financial authorities has hailed the greater allocation of resources in the Chinese finance system to innovative tech enterprises.
“Since 2021, regulatory agencies have continued to improve the policy system for tech innovation financial services, and financial institutions have raised the ability to service tech enterprises via innovation in products and services and optimisation of regulatory and assessment mechanisms,” wrote Financial News journalist Li Guohui (李国辉) in an article entitled “Financial Power Accelerates the Advance of China’s Tech Innovation, the Waters of Finance Increasingly Flow towards Innovative Tech Enterprises” (金融力量加速推进中国科技创新
Li highlighted in particular the launch of the Beijing Stock Exchange towards the end of 2021, which focuses in upon innovative tech start-ups, and the launch of Shanghai Stock Exchange’s STAR Market Board in 2019.
As of 28 January the STAR Market Board was host to 387 companies with a total market capitalisation of nearly 5 trillion yuan, while the Beijing Stock Exchange was home to 84 enterprises with a total market capitalisation of nearly 250 billion yuan.
In 2021 alone STAR saw 165 listings which raised 211.6 billion yuan, most of which were for information technology and biotech enterprises.
Zou Lan (邹澜), the head of the Chinese central bank’s financial markets department, said that the next step would be to “improve the system of financial support for tech innovation, and drive increases to the financial services ability for tech innovation.”
The central bank will push for banking sector financial institutions to “appropriately increase risk tolerance, and increase medium and long-term loans to the manufacturing sector.